The PlayStation network has been shutdown since April 20 2011. They are working round the clock rebuilding and strengthening the system and should have it back up within a week, Early May 2011. The related question will have the latest information that has been provided and will be updated as new information becomes available.
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Yes you can play PSN (playstation network) for free.
You can't play PlayStation games on the Internet, but if you have a PlayStation 3, you can go on the PlayStation network and play with other people through the Internet.
You must join the Playstation Network see related link or use the one for your PS3
Used games for the PlayStation 3 game console can be purchased from a number of places. Offline retailers such as Game Stop sell used PlayStation 3 games. Online marketplaces such as Amazon and eBay also have used PlayStation 3 games listed as being for sale.
You can not play PlayStation 3 games on a PlayStation 1, but you can play PlayStation 1 games on a PlayStation 3. All of the PlayStation consoles are backwards compatible.