As a licensed child care provider and mom of 3 I can tell you potty training is such an exciting time for little ones!! I'm sure you are going to get a million different responses regarding age and readiness, but I'll be the first to throw in my 2 cents ;) I began all of my own children young! At around 12 months I introduced the potty chair into the bathroom. I didn't expect them to actually do anything in it, but wanted them to become comfortable with its presence. I would have them sit on it and we would read stories, bring in small (easily washable) toys to entertain them,etc. By the time they were 15-20 months and a little more ready to actually begin training it was much more second nature. BTW my own kids were fully trained by 18 months (dd), 25 months (ds), and 21 months (dd), so no I don't think your daughter is too young!
I find that bringing a newly pottying child to the toilet every 35-60 minutes (set your microwave timer!)at least for the first week helps to create a sense of consistancy and routine. This way you are more apt to catch them before they have already gone. I personally do not like pull-ups and prefer good ole fashion training undies for children who are potty training. They allow the child to feel when they are wet/soiled vs. a pull up wich pulls the moisture away.
One of the biggest keys is tons of praise and patience. Don't be embarassed to jump up and down and do a celebratory "pee-pee in the potty" dance. Reward/sticker charts can also be a good motivator. (M&M's were used with my own kiddos- 3 if you pee, a small scoop if you poop- we used a small medicine cup) You want them to feel the sense of pride and excitement that such a milestone should bring. Some children (I have potty trained more than my fair share!) are going to just "get it" while others will need time and perhaps need to wait a bit longer. I don't believe in forcing a child to potty train, but I also believe a little nudge is not such a bad thing.
Hope this is at least a start in the right direction. Please feel free to email me at ____@____.com if I can be of any further help!