>>10
Linux is an operating system. It's a Free clone of UNIX, an operating system that was created at Bell Labs in the 1950s. By Free (as opposed to free), I mean anyone can view, edit, and redistribute the source code, unlike most commerical software, which all but makes you give up your firstborn child. For more detail than you could ever want, read the Wikipedia article (
http://en.wikipedia.org/wiki/Linux).
To answer your specific questions.
By "core," he means the kernel and system libraries. The kernel is what actually makes up the operating system. It's the thing that the bootloader loads. It acts as a layer between the hardware and userspace software, providing abstractions like timers and timesharing and generally making it much simpler or possible to do things like write to a disk. Without an operating system, each program has to contain code for writing to (all different kinds of) disks, using the Internet, or whatever else it wants to do, and only one program can run at a time, per boot (if you've ever used an old computer that required you to pop in a disk and boot to use a program, and then reboot with a different disk for a different one, that computer didn't have an operating system). Most operating systems also use libraries (collections of code files that aren't stand-alone programs) to add more abstractions and increase portability. For example, Linux's main system library is glibc; programs can be ported to other OSes that use glibc, like BSD, without much trouble. The libraries act like a layer around the kernel (a "wrapper," in compsci parlance).
Basically, what this means is that programs that make any calls to system-specific libraries or the kernel have to be partially rewritten ("ported") for use on a different operating system. For example, a Windows program that creates graphical windows and such, like Firefox, has to use different libraries on Linux or Mac, since the Windows GUI libraries are Windows-only.
WINE isn't actually an emulator. It's a "compatibility layer." Basically, it translates calls to Windows code into the respective calls to Linux code. If I run, say, Office, and it requests that the operating system open a file, it only knows how to do that in Windows. WINE takes the request and sends the request to Linux. Any information recieved, like a pointer to the file, is likewise given to WINE, which then translates it back into Windows format and gives it to Office.
>>2
Linux *can* be very stable or very unstable, depending on the software running on it.
Not always true. Windows itself has a number of problems. It's been getting better recently in XP, but I still remember ME, which crashed randomly for no reason.
>>5
Ever heard of Debian? Ubuntu?
>>11
installing software on Linux is a nightmare
hal ~ # emerge mozilla-firefox
<put terminal in the background, go to play game>
done!
Or, emerge mozilla-firefox-bin, you're up and running in a few minutes.
>>12
1. There aren't drivers for it? Are you sure you've looked thorougly? If not, try ndiswrapper, which lets you use the Windows ones.
2. WINE.