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I think the first two questions can be addressed by a good book. I have this one which discusses quite a few herbs and how to prepare tinctures, salves, ointments, etc - this book, by the same author looks even nicer.

As for question number three, I'll refer you to the first rule in the sidebar: nothing you see here is medical advice. I would recommend some books, and after getting an idea of various herbs and their uses, find a local herbalist and have a session with him or her to discuss your health, your body, your medical history, and the herbs you're thinking of using. They should be able to shed some more light on your choices and make some additional recommendations. It will be money well spent, I assure you.