There is no places in order for one to get a free Playstation 3. However, One might be able to borrow from their friends, or at a library, or when some one else throws it away.
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Yes you can play PSN (playstation network) for free.
No the PlayStation 3 comes with Free PlayStation Network. Live is for the Xbox 360 and is not free.
Downloads are sold they are not free and the Playstation Downloads that are free from the Playstation Plus are not free they require membership in Playstation Plus and expire if your Playstation Plus membership expires.
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.
PlayStation x PlayStation 1 PlayStation 2 PlayStation 2 slim PlayStation 3 PlayStation 3 slim Coming soon - PlayStation 4