The Organic Lawn Care FAQ will answer most of your questions, I think. Anything you're not sure about please feel free to ask!

Clearly whomever gave you the advice to get a lot of organic matter was unfamiliar with the topic. If you follow the guides in the FAQ, you will have no odor, no dead grass, and it won't cost you an arm and a leg. Furthermore your grass will be noticeably greener than your neighbor's grass. I like to call it "no hassle" gardening because most of your problems go away when you start with this. You will have to get used to the return of birds, lizards, and toads to control your insects. Fortunately they do an excellent job of it.