Hi StackOverflowNewbie,
the most important constraint of REST is the hypermedia constraint ("hypertext as the engine of application state"). Think of your Web application as a state machine where each state can be requested by the client (e.g. GET /user/1).Once the client has one such state (think: a user looking at a Web page) it sees a bunch of links that it can follow to go to a next state in the application. For example, there might be a link from the 'user state' that the client can follow to go to the details state.
This way, the server presents the client the application's state machine one state at a time at runtime. The clever thing: since the state machine is discovered at runtime on state at a time, the server can dynamically change the state machine at runtime.
Having said that...
on 1. the resources essentially represent the application states you want to present to the client. The will often closely match domain objects (e.g. user) but make sure you understand that the representations you provide for them are not simply serialized domain objects but states of your Web application.
Thinking in terms of GET /users/123 is fine. Do NOT place any action inside a URI. Although not harmful (it is just an opaque string) it is confusing to say the least.
on 2. As Brian said. You might want to take a look at the Atom Publishing Protocol RFC (5023) because it explains create/read/update cycles pretty well.
on 3. Focus on document oriented messages. Media types are an essential part of REST because they provide the application semantics (completely). Do not use generic types such as application/xml or application/json as you'll couple your clients and servers around the often implicit schema. If nothing fits your needs, just make up your own type.
Maybe you are interested in an example I am hacking together using UBL: http://www.nordsc.com/blog/?cat=13
on 4. Normally, use POST /users/ for creation. Have a look at RFC 5023 - this will clarify that. It is an easy to understand spec.
on 5. Since you cannot use sessions (stateful server) and be RESTful you have to send credentials in every request. Various HTTP auth schemes handle that already. It is also important with regard to caching because the HTTP Authorization header has special specified semantics to caches (no public caching). If you stuff your credentials into a cookie, you loose that important piece.
All HTTP status codes have a certain application semantic. Use them, do not tunnel your own error semantics through HTTP.
You can come visit #rest IRC or join rest-discuss on Yahoo for detailed discussions.
Jan