I'm new to the game and am not sure which way to align myself. What happens differently in the game if I'm evil than if I'm good? Any information will be helpful.
There are quite a few differences in your available powers depending on how you play. You can find them listed in this FAQ, section [bc03].
Most of your core powers will be more or less the same, but the upgrades you can unlock for them have different karmatic requirements. From the FAQ:
There are two powers unique to each playstyle, which you unlock by completing good or evil side-missions. Look for [Overload Burst] and [Arc Lightning] in the FAQ.
Generally speaking, being evil makes you more of a damage dealer (mainly due to increased splash damage with many of your powers), while being good allows you more precise control of what it is that you damage.