you have to hook up to your internet connection (broadband or dsl) and let it configure itself. if this doesn't work, call 1-800-4MY-XBOX and they'll help you out.
yes as long as you remembered your email address and password.
yes xbox games work on xbox360 if you have the hard drive but some of them dont work.
XBOX Live.
No.
well you never need Live to play Xbox games on the 360. All you need is a hard drive for your Xbox 360
You have to pay for xbox live.
No.
go to xbox LIVE marketplace and there is a huge list of downloads
yes
Every Xbox 360 console has the capability of connecting to Xbox Live.
Yes, Xbox games are compatible with the Xbox 360.
when you get live you create a gamertag