No you need a broadband or DSL WiFi or ethernet connection and can not connect through USB port
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The PlayStation 3 has a built in Hard Drive. Ps3 game saves will be saved to the Hard Drive. But to save PlayStation 1 + 2 games, an internal mermory card must be created inside the Hard Drive. PS1 + PS2 games will save there. So no you don't need a memory card for the PlayStation 3.
You can either use a Visa, American Express, Mastercard, or PSN card in order to put money onto the PS3.
Playstation 3 do not use CDs for games but can play other CDs
No, you can't use ps2 controllers to play ps3.
Use the handle.