Help a Fellow Consumer - Red Dead Redemption

Good day y'all,

I am looking for some help / advice / warnings.  I am in search of a new multiplayer experience and have turned my attention to the possibilities of Red Dead Redemption.  Unfortunately I have not been able to get any of my questions answered via my brief searching of the interwebs.  I am debating buying this after work today and checking it out but I'd like a little help on finding out if it's what I would like or am I setting myself up for another Rock Star burn?

So, it appears that the Free Roam option is exactly that.  Much like some of the more popular PC MMORPGs....Am  I correct on this?  I spawn into a world and I can either fend for myself or I can gang up with some other yokels and we can go regulate and mount up?

So here are my main questions aside from the above question:

1:  Weapons: Do I get a basic one and have to level, steal, or kill my way to a better one? 

2:  Leveling:  Do I gain new levels for anything I do?  Do I have to complete specific things to get XP or does shooting and skinning a rabbit grant me XP?

3:  Money:  Do you need it, is it worth anything?  Can I use it to upgrade my guns, horse, costume?

4:  Costume:  Can I get all Clint Eastwood and sport the Pancho and an Iron plate underneath?  Can I get all lee Marvin and wear all Black?  Huh? or is it all Red Faction style and i just pick a character?

5:  If some no good sombitch shoots / steals my horse, do I have to buy a new one or do I have to wait a certain amount of time or am I just S.O.L?

6:  Are you only playing with 16 people in the world at a time or is it set up a little more like Phantasy Star Universe (if anyone remembers that game)?

Thank you in advance to any decent fellow willing to help make the decision as to spend or save my monies this afternoon.

Cheers and have a great fucking day!

Chet Chesterson