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1. Altough most sponsors require a url in their signup form, many do not. But one of the first steps you take should be to get yourself a domain and hosting.
2. Any start is a good start. You dont have to have a blog, you can simply create any html page and do whatever you want with it - but having a blog just makes everything easier. You can then setup your blog to automatically update using rss feeds. This way you wont have to waste time updating the site yourself every day. Then you can spend more time finding what works best for you.
3. I wouldnt pay anyone at this point, and I wouldnt use any paid software or scripts either. Before you invest more then you need to, try the free route. So the start up should cost you a domain name and hosting. I wont list any prices as these vary. Shop around.
4. Hard to say. You dont have any traffic or anything at this point. So I would suggest you signup for different ones in different niches and find what works best for you. This can be a very difficult process, so stay strong, stay motivated and have fun.
Good luck.
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