Madman wrote:I have an unsubsidized HTC Wildfire S, which I have been using for more than a year. But somehow, it seems it's getting slower and more buggy with each coming month.
Unless you have been updating from HTC and installing new apps, I don't see how it can be more "buggy". Slower may be, as there are a number of factors like decreasing empty space (more photos, messages, app data).
Madman wrote:I've heard that there is a Cyanogenmod, which, if I understand correctly, is an Android source released by Google, + opensource development goodies, - rootkits and spyware.
Don't know where you heard about the spyware bit. Cyanogenmod has tons of testers and is reviewed quite heavily, like any popular open source project. The ones with spyware are the ones with that CarrierIQ crap which are carrier-branded ROMs. Cyanogenmod belongs to this class of "custom ROMs" where people put together their custom suite of kernels, drivers, and apps to form a package.
Madman wrote:I've also heard that it's less buggy and lighter on resources, but I have no idea how true that is.
Just think about it, no carrier "bloated" apps (some of them actually run constantly in the background!), carrier branding, no "skinning" from manufacturer (Your Wildfire S has Sense v2 which is quite heavy on such a lower end phone.)
Madman wrote:So I'm kinda unsure what to do. From one point of view, different freezes and bugs are tipping me off, since I want a dependable phone, from another side, I'm not sure how dependable Cyanogenmod is.
It is quite stable unless you use the latest alphas or nightlies. If you use the lesser known mod packages then there may not be enough testing. But by far, in the custom ROM scene, CM is the leader in terms of installed base. There are other ROMs that may be good, with even more optimized kernels, etc. But you have to work with a smaller (but often dedicated) community.
Madman wrote:There is also a second problem, the Wildfire S (marvel) seems to be unsupported by official Cyanogenmod development, and there is only a port, which can be found on Googlecode.
That is the real problem I think. You have a much smaller base to work with. What other custom mods have been done on the device? A lot of variants pretty much forks from the CM tree.
Madman wrote:And finally, I'm a total newb at Android stuff, I know some things about Linux, but Android is completely new to me.
Just like in Linux, enough reading and testing should make you an expert.
Madman wrote:The phone is S-ON, unrooted, and I have no idea what I need to do to be able to install Cyanogenmod. It seems HTC offers official way to root the phone, or unlock the bootloader, no idea which. But I don't know if that's enough.
To install and boot custom mods you will need to get perma S-OFF I believe. There should be lots of discussion on how to do it on HTC phones. Not sure how much info is out there for the Wildfire S myself, since I don't use HTC phones. This will be your biggest obstacle to overcome. But remember, bootloader unlock and rooting are technically 2 different things. They get lumped together too often for people's own good.
Madman wrote:So the question is, can anyone explain me in few simple words, how bad the situation is, how hard it is to install Cynoagenmod, is it stable, can I revert to original HTC Sense later if there is a problem, and how to back up the phone if I want to?
Your phone being not-so-popular put you at a disadvantage to begin with due to the lack of support. Now that this is out of the way, you can calm down. Start reading more about HTC phones and your device in particular. Like Samsung and Sony with Odin/Kies and Flashtool, there should be a generic flashing tool out there for HTC phones. It is quite difficult to brick your phone in a way that it won't even accept a flash from an external app. So usually if you have a bad flash of app you can just flash from a known good ROM (stock or custom), reboot, and you should be back on your feet. [usual disclaimer applies] If you really want it you can even be the pioneer to put a custom ROM package together yourself for your phone. That needs a lot of experimentation and risk of bricking. Titanium Backup is invaluable for this constant flashing and reflashing of ROMs if you intend to use the phone day-to-day.
Since there is a ROM out there, I would think as a first step you read up on rooting, S-OFF, and flashing and try that out first. Make sure you also figure out a way to flash back the old stock ROM before proceeding as well. Then you experiment.
Madman wrote:It seems that the best place for discussion is xda-developers, but I'm afraid they will eat me alive as a noob, and that place is, in best traditions of open source development, a real mess, 300 page threads, all sorts of RC0, alpha, ROM, bugfix and stuff. I can't understand how to get valid and nondeprecated info there

XDA is the best you can get (may be also android authority or modaco). And yes, the things you describe you have to learn to live with them. Just don't ask really dumb questions and you should be fine. Make sure you post in the right forum (General vs Q&A vs Development). Read, read, and read some more.
Good luck.