'Gracias' is always fine, but, as you've discovered, there are other ways to give thanks.
'Agradecer' takes an indirect object and a direct object.
Learn this construct: agradecer(le) algo a alguien.
This means 'to thank someone for something'. The only preposition needed is 'a', used to identify the indirect object (represented by a alguien) when using the ambiguous third person or for emphasis. There is no preposition needed before the direct object (represented by algo).
Te agradezco tu/la ayuda. = I thank you (familiar) for your help.
Le agradezco su/la ayuda a usted. = I thank you (formal) for your help.
Le agradezco a él su/la ayuda. = I thank him for his help.
A ella le agradezco su/la ayuda. = I thank her for her help.
Notice that I identified the indirect object used in the third person, and moved it around a bit so you could see that it doesn't always have to be at the end of the construct (as the model suggests).
Last edited by Rusty; December 26, 2011 at 09:53 PM.
Reason: more information added
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