1) You really don't need to worry about that at this stage. All you need to know is they provide everything you need and it takes around 10 days for you to get it back.
2) Most games are at 5/6gb.
3) It really depends on the game for how effective it is. Some load times are cut drastically, which is obviously useful, and the absense of the optical drive spinning is actually bliss.
4) Well you'll either need to wire it to a pc with the internet, your router, or buy the wireless adaptor (if you have wireless, obviously) to set it up. When you turn it on you'll be prompted to create your profile. There will be a link to upgrade it to an xbox live account, go on that. Go through the stages until you have your gamer tag set up. Then when you first sign in to live, you'll be prompted to update to the NXE, and when that's done you will be able to create your avatar.
Hope I helped :)
Edit:
5) See 1.
6) No, but you do get a short additional 3 month warrenty after each repair, though that is only the regular warrenty, not the RRoD extended one.
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