I just made a batch of MMF for the first time and Im not sure how long it's supposed to be in the mixer-it looks like large curds-very dry! Is this right?! Im ready to throw the batch out!

Doesn't sound right did you add a tiny bit of water sounds like you put in too much icing sugar
You should have only put in half the sugar to start. I made that mistake the first time I did it too.

You may be right because I switched the MM's out of the original bowl because it was too small after it started getting poofy in my microwave-I must have lost moisture and I 'eyed' half of a 2 lb bag of c.sugar to start with-maybe I better measure it! How long do I let the doughhook go (and I am assuming 'low' speed) just until the sugar is incorporated? Should it all come together (not like my curds?!)? When its 'done' do I then put it right into the saran wrap or do I knead it for a minute? Sorry for all the questions-just confused!

it sounds like too much powdered sugar. i can never get in the whole amount the recipe calls for, in fact i probably short it by a good cup or so, i guess a lot of it has to do with the humidity. when it's done with the right amount of powdered sugar, the consistency totally reminds me of playdough or maybe pie crust

here is how to do it from CC i followed just as this said and it came out just fine for me and it was my frist time as well just the other night.
http://www.cakecentral.com/article47-How-to-Make-and-Decorate-with-Marshmallow-Fondant-MMF.html

Playdough or pie crust?! Are you sure you don't mean dry, crusty curds? hahaha Boy was I way off. Good tip about the sugar. It calls for 2 lbs and I eyed the first lb going in to begin with and then just slowly added the other pound. Im glad to know that some don't use it all...maybe I will be brave and try another batch tomorrow!

I always caution about not using enough marshmallows. A lot of people throw in a whole bag, assuming it's a pound. My store doesn't sell pound bags (some do). Make sure you're using a whole pound.