There are many ways to lose life points. Every player starts out with 2000 at the beginning of the duel. Some cards say to inflict this much damage to your or your opponent's life points often after a certain requirement has been fulfilled or to pay as a cost for a certain effect. The most common example of losing life points though, would be if one player attacked another player with a monster with atk points higher than the opponent's atk position monster. The difference between their atk points would be inflicted to the person with the lower atk point monster.
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I know only Magic Cylinder
No. But if there is, it is probably already banned.
8000. But in the anime the usually have either 2000 or 4000
There is no legitimate Yu-Gi-Oh card with 'infinite' for the ATK, however there ara a few fake cards with it.
Yes, but only if they have no monsters left on the field- or If you have a spell/trap/special monster that allows you to attack them directly.