creating a whole site using asp.net 2.0

Answer 1

If you're new to programming and to the VS IDE, I would definitely suggest starting with something a little less ambitious than an E-Commerce site.

Start here:

http://www.asp.net/

UPDATE:

Since you are using Web Forms, you could start with the TailspinSpyworks (iBuySPy re-written for ASP.NET 4.0) E-Commerce site tutorial from Microsoft's Joe Stagner:

http://www.misfitgeek.com/op-ed/introducing-tailspinspyworks-webforms-sample-application

When you get to the checkout part, you need to be aware of a gotcha relating to the fact that an ASP.NET form can only have a single form tag. If you are integrating with PayPal and want to avoid messy JavaScript hacks, you can follow the steps I blogged about to get around this problem:

http://www.codersbarn.com/post/2008/03/08/Solution-to-ASPNET-Form-PayPal-Problem.aspx

Answer 2

1. This is such an open ended and subjective question that it's impossible to answer as a simple bullet point. please ask the question again on it's own.
2. Planning, planning, planning. There is no substitute for it. Also you should do a few (tester) web sites to get used to the environment and the language you choose.
3. You can get help here.
4. Not as such. I suggest buying a book or 10 and reading through them and doing the samples. Start off slow and basic.

EDIT

Also look at WebMatrix. It will create a site for you that you just need to modify a bit. It will also give you a good idea on some techniques.

EDIT 2

Also consider upgrading to VS2008 or VS2010. Express editions of both a free from the Microsoft site.