(Note: You may see certain terms have 'ou' but the way you have seen it written is without the 'u' or with just an 'o' with a line over it. These are all the same. The line over the 'o' simply means you hold the sound longer. Showing 'ou' makes the sound be held longer as well (and since I can't make the lil' line over the 'o' with this program...that's whatcha gotta get ^_^;; )
Choto - Japanese, meaning 'a little' Usually you'll hear 'chotto matte!' meaning 'wait a minute/hold up!' 'Chotto matte kudasai' would be a more polite form
Chibi - Japanese, meaning 'short, small,runt,etc' Often refers to a character that 
is smaller than what she/he normally should be. Their entire body is squashed, smaller, and much cuter appearance than it's counterpart.
Con - Short for Convention. Anime fans gather together to buy anime stuff, watch movies, dress up, and trade with each other.
Daijoubu -Japanese, meaning 'all right'/ 'OK' usually in response to an inquiry about one's health
Damaru -Japanese, meaning 'to be still/silent' Often the infinitive is used as an exclaimation; 'Damare!' ("Silence!/Shut Up!")
Dame-Japanese, meaning 'useless/no good/hopeless/no can do' Often heard as 'Dame da' (usually repeated) 'I won't do it' or 'bad idea, bad idea..'
Doujinshi - An unoffical, fan-done comic. They usually feature characters from anime or manga.
Dubbed or Dub - English is recorded over the original Japanese soundtrack. The all new dialog and sound effects may not be a very accurate translation.
Ecchi - Japanese meaning pervert or perverted, not as harsh in meaning as 'hentai'
Fan dubbed or Fan dub - The dubbing process is done by someone other than the video production house, usually done by an anime club. The quality of dubbing can range from good dialog and foley sound effects to horrid acting and bad sound effects. The translation may not be done well either.
Fan Fiction - Stories that have been written by a fan that conforms to a anime story line or characters. There are many examples on the web.
Fan subbed or Fan sub - The subtitling process is done by someone other than the video production house, usually an anime club. The quality is generally good, but there might be some unreliablity to the translation. (although almost guaranteed to be better than FUNimation -_- )
Hentai - word used to refer to pornographic anime, it's the Japanese word for "perverted". This material is not intended for children at all.
Kawaii - Japanese meaning 'cute'
Kisekae(KISS) - A paper doll program featuring many popular anime and manga character "dress up" sets. Set designs range from those suitable for children to "adult only" content.
Manga - The word for Japanese comic books. Many of the more popular anime are taken from manga. Story lines in manga can vary drastically from the anime. Manga is often serialized (put together with other manga in a larger book with monthly installments) this allows more manga to be accessable to a larger audience (Shonen Jump is an example of serialized manga)
Mech or Mecha - The large robot-like fighting suits that are found in many anime story lines.
Nihon - Japan
Otaku - 'geek' or 'nerd'; has a negative connotation to Japanese. But Westerners have taken it in a good connotation to mean a big fan of anime.
OAV/OVA - Original Animated Video; An anime direct to video release, made only for the video market. OVAs are common in Japan, while still a rarity in America.
Seiyuu - Japanese for 'voice actor'. Referring to either male or female. In Japan, seiyuu's are often have other talents such as singing, they often have their own fan-base outside of a particular anime.
