fuNGoo: Purchased the whole X-com bundle a few months ago, but I've only booted up UFO Defense a whole two times. It's not a very newbie friendly game. I still have no idea what I'm suppose to do in that game.
Look over the manual and here are a few simple tips.
1. Know what each button does.
2. Try not to exhaust your units points.
3. Play it safe to keep them alive by not being out in the open that often.
4. Move in groups.
5. Remember one Ship is for shooting down the UFO and then the other is to send a team to check out the crash site.
6. By enough weapons and ammo to keep the men alive.
7. build your base and do Research and other things to better your base and units.
8. Keep the time at 5 sec. until you are all set and then save. Then change time to 1 hour to find a UFO and then follow the above advice.
9. Oh, remember to use the Ladder Up, Ladder Down Icons to see various levels and move correctly. I believe that is the icon anyway.
These are little things but they should help.
I hope this helps as once you get it, it can be a great game that really puts you up against it at times.