no
You can go out....like shopping and stuff but you can't visit your neighbours.
Yes, you must go shopping, it kinda ONLY works on Sims 2 and 3
Yes.
You have to have The Sims 2 Happy Holiday Stuff pack installed.
If it is not in your decorations, you can download a Christmas tree and other holiday decorations from the official Sims 2 website in the exchange section.
Yes, but you have to have Sims 2 Holiday Stuff, and Sims 2 Family Fun Stuff, and (optional) Sims 2 Seasons {for snow of course}.
If you buy the Sims 2 Holiday Stuff Pack you can buy all sorts of Christmas decorations, and if you bake the cookies Santa will come and bring your sims gifts.
That depends on what you want the most. Both sims 2 and sims 3 are good games. I would perhaps go for The sims 3, because it is a newer game and it has alot more features than the Sims 2. The graphics and the town are way better in the Sims 3, but it is a bit more expencive.
If you mean where can you buy them, you can go to thesims3.com, ebay, amazon, game stop, or the shopping section on google.
yes
Yes there is a sims 3 for playstation 2 because i got it for Christmas