I am trying to install python-tds and I cannot figure out where to go from here. I have very limited experience with python so any help would be much appreciated.
You are trying to install a package that will need to write files under system directories and your [current] user does not have enough privileges to do so.
You need to install it as superuser:
$ sudo pip install python-tds
In this particular case,
sudo will elevate the privileges (to superuser) for the command in front of it.
sudo may also be used to execute any command as any other existing user (
$ man sudo for more information).