With a stone pick.
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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
To get Iron ingot in Minecraft you can either kill zombies (but that may take forever to find a zombie that will drop it) or depending on the server you can get to level 10 in an arena. Also someone might be selling it. :) To purchase it is the easiest way to get it in my opinion.
play minecraft.... he doesn't exist xD
You can use it to make armour, in the same way as you can make it from Iron Ingots.
The only way to receive obsidian when mining is using a diamond pickaxe.