Yes from the PlayStation Store
You can not download the game discs from any game and only download enough to play the game with the disc in the drive
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Yes. all ps3 models play select ps1 titles It depends on which ps3 you buy. I bought the 80 gb and all of them work on it. Good advise buy the 80 gb and put in a bigger hard drive
At this time you can not, you must go to the PlayStation Store to buy games
The Complete Playstation Store is not on the part of the Playstation Network that you access from the PC and you will be able to buy and download from the PS3. You can not download and load and play games into a PS3 harddrive except from the Playstation Store.
If you make a Japanese PSN account, and buy a code for some money, it's on the PSN store. If you can wade your way through all that Japanese. I think it might be a "PS1 Japanese Import" as well, but I'm not sure.
If your referring to the PlayStaion. PS1 you cannot buy at retail stores, PS2 is brand new for around AU $159.00, PS3's RRP is $499.99