Yes, you can craft diamonds in minecraft. To do this, simply place a diamond block on a crafting grid. This will yield nine diamonds. Similarly, you can place nine diamonds on the crafting table, which yields a diamond block. Other than this, there is no other way you can craft diamonds.
Note: Diamond blocks are not naturally found in a Minecraft world.
Consequently, you need to find diamonds to craft the diamond block to craftthe diamonds.
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You don't make diamonds (unless, probably, if you have Tekkit), you find them. I suggest mining around lava pools or mining 7-12 blocks above bedrock, as a whole lot of other goodies and stuff is around that area.
Yes, but you need a crafting table in order to do that. Fill every 9 square with a diamond, and you can craft a diamond block. This can be split in 9 individual diamonds.
No.
You don't. You must mine all the way down to 16 feet or less where diamond ore will generate. You must then mine it with an iron or diamond pickaxe
It is called Minecraft because the primary things you do in Minecraft is, well, mine and craft.