How would I be able to use the cash I have in my wallet to purchase bitcoins?
The processes I read about this were very vague and left me confused. I saw a post on here where someone said I would be able to put money on a bank account, wire it to Dwolla or Liberty Reserve, and then purchase bitcoins on MtGox. Would this method work?
Yes. It takes a while, but it works and it is almost free. Alternatively, you can use bitinstant
and make a cash deposit at several bank locations (you'll have to pay a fee though).