For some time now, users have had to make do with S-PLUS books which contained some overlap with R. Now R users have a book they can call their own. After briefly discussing the R system and the language basics, Dalgaard goes through what might be covered in an advanced undergraduate data analysis course. Throughout the book, code examples and output are carefully interspersed so that the reader doesn't go too long without having a concrete example.
Dalgaard leaves out some advanced topics such as time series, spatial statistics, etc. (some of which are nicely covered in Modern Applied Statistics with S by Venables and Ripley) but that is probably for the best. The book is not bloated, nicely priced and I would recommend it to any advanced undergrad or first year grad student wanting to learn how to do statistical analysis in R.