I havent programmed in TurboC in my life, so I cant help you with your settings. But theoritically if the include, and library directories are configured properly, there shouldnt be any problem. Did you check that stdio.h is actually inside that directory?
Anyway why do you think that Microsoft VC isnt a good compiler for learning C? Since TurboC is a bit outdated, it would be better if you use a modern compiler like Microsoft VC or DevCPP. You can get the VC 2003 toolkit for free if you only want a commandline compiler. Although Microsoft has replaced it with the VC2005 compiler, there are external sites that lets you download it. Google for it. When it comes to compilers, there is nothing called simple or complex. All of the above compilers can be used in the command line, and that will be enough for a beginner. The way you compile is more or less the same for all compilers.
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