First, make sure you take a look at the stickys in this forum. They are very helpful in explaining gear questions. Also, do some searches on "gear" and similar stuff for some good thoughts on where to buy, what to buy, and who to buy.
Now for the fun stuff:
1. I'd go for a '05 or newer GS500F. They're pretty easy on newbies, cheap to maintain, and cheap to insure. If you have a little money to spend, go for the '08 Ninja 250; it's freakin' beautiful. (I'm a full-time student, too. And the GS500F worked great for me.)
2. You got a few options here: One is to get textiles/mesh to keep weight down, and don't skimp on helmet or boots. Another idea would be to wear sturdy clothes and get some under-armor (not the underwear...) such as Bohn to go underneath your clothes; problem is that in the event of an impromptu pit stop (i.e. crash), you'd be just as hurt by roadrash, but hopefully no broken bones. And finally you can get the gear you need for your climate and just stash it somewhere out of the way.
3. I think your asking for the minimum needed and where to get it cheap. If so, I also like newenough for all of your clothing needs; they have helpful little write ups to guide you along. But get a helmet, gloves and boots from a local dealer. These items in my experience need to fit the best for safety, comfort, and actual usage. It's better to try on different brands and then make a final decision AFTER you go home. Why after? Because, many salesman are just that salesman, and they may push you into something you're not comfortable buying. Also, it gives you a chance to research your pics on the good ol' interweb.
Hope this helps, and check in the
Motorcycle Safety, Security, and Rider Tips Forum: Primary Transportation Thread for other ideas.
PS- The only dumb question is the question you were too proud to ask. That's the one that gets you killed. Ask often and honestly.