Hey, dude,
1. Yes
2. fireball for mages, flame strike for clerics; flame blade'll work, too
3. Well, that's a matter of opinion, but you may either want items that make up for areas of deficit (e.g., make gloves of dexterity if you have low dex scores) or capitalize on areas of strength (e.g, make gauntlets of ogre power for your tank fighters) - of course, you'll be limited by what level is required for the item, how much xp you're willing to use up for crafting early on (e.g., personally, I never craft till after 10th level), and what spells you've got (spells determine what you can make in a lot of cases (e.g., can't make cloak of resistance without the spell, "resistance").
4. The 3.5 and 3E DMG items section names the requirements for creating items; when you bring up the crafting wondrous menu on your radial menu, each item tells you what is required to craft it, and you may also find this thread usefeul:
http://www.gamebanshee.com/forums/sh...threadid=29002
5. The Co8 patch makes all masterwork items available through the smith in Hommlet (MW items are necessary for crafting magical arms and armor) and allows the creation of ioun stones in the wondrous item department.
