4) Started build using "Debug (with DLLs)" setting. 174 succeeded, 12 failed. All errors had to do with python.h not being found. Don't think that's a problem, I never installed it because I'm not sure I need it, I can always do this later right? Everything else seemed to be built fine.
The "py" in wkspytypical means it includes Python-related projects. But yes, as long as you don't need/want these, you can ignore these errors.
Am I ready to start developing my own applications now?
Yes.
I saw some similar posts talking about setting environmental variables, I never saw anything like that in the manual.
This will be going to be relevant, as the environment variable (CRYSTAL_1_4 or CRYSTAL) tells CS where to find plugins as well as data files.
When I do start my own project, I just need to include the header files in the include directory and the library files in the out/debug8/lib folder, right? Again, sorry for any redundant questions but this whole thing is pretty confusing to me until I can just get to the actual coding part. Thanks in advance for the help.
The manual contains a step-by-step guide to set up a VC project:
http://www.crystalspace3d.org/docs/online/1.4/manual/HOWTO-Creating-External-MSVC-Application.html#0