Two ways....
1. Water source block hits lava source block.
2. Place redstone on a block of dirt with water flowing right up against it but not over the redstone... then let lava flow onto the redstone.
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No. Only a Diamond Pickaxe can mine obsidian.
Make a 4x5 obsidian frame, and set the middle of it on fire.
Unfortunately, you can't because you need Obsidian and in order to get that, you need a diamond pickaxe to mine the Obsidian.
You need a Diamond pickaxe to mine Obsidian.
A portal to the Nether requires ten Obsidian blocks (eco version) or fourteen Obsidian blocks for the full version.