At the micro stakes, cash games are a lot tougher than tournaments. The ratio of regs to fish will be much higher. This is because cash games have much lower variance than tournaments (attractive to regs), but less potential to have an awesome jackpot session where you win 50 times your buyin (less attractive to recreational players).
Start at 2NL because the transition will be tough for you at first. Remember that you're playing with deeper stacks (usually 100bb effective stacks), so you don't always want to stack off with TPTK and overpairs. Try to play more hands which have implied odds
(suited connectors and pocket pairs), which will allow you to make monster hands (sets, straights and flushes) and win big pots. Start off by playing really tight postflop and folding to raises, but gradually loosen up as you get a better feel for how the games play.