TH0R,
When your iron first gets got enough to actually melt the solder, you should slowly melt a short length (less than an inch) of solder directly on the tip. It will form a liquid ball on the tip of the iron.
Once you have this liquid ball, wipe it off on your wet sponge (or whatever you're using) to remove the excess. You should be left with a bright, shiny, silvery tip. This process is called "tinning" and is essential for good heat transfer.
While you're actually soldering, only then is it time to bring the iron to the board. Place the tip of the iron against the component lead you're trying to solder. Wait a few seconds. The idea is that you want to get the lead as hot as the iron itself.
Then, still holding the iron in place, touch the solder to the connection (but not directly to the iron) and it should melt freely.
The condensation you spoke of is unfamiliar to me, but it sounds like it could be some of the pine pitch contained in solder bubbling onto the board. It has a wet appearance.
Hope this helps.
EDIT:
The molten solder won't drip off of your iron unless you have a lot of it on there, which there is no good reason to, except that it looks cool. But the solder always follows the heat source, even against gravity.
Oh hey! I just found this cool British "how to solder" video on YouTube! I just watched the first few minutes, and it says and shows a lot more than I can through text...just, unless you're British, don't pronounce the "L" in solder!