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Basic service question for VoIP NEWBOY

4 Part Question:

I'm very new to VoIP and how it works, thats why I'm asking the experts.

I saw i big advantage being:   TOLL BYPASS!!!  

1.) For a home network or a small PC/telephony network    and    without huge capital to spend on Routers/Voip modules, etc.  Now, could I set up a small Voip network using connecting service with a Phone company that offers Voip connections. - what type of equipment/software would I need?

2.a   Ex.  I have a small network, 1 server.   Could I buy 1 Voip connection with phone company X that allows all the end users to make long distance calls to anywhere in the world for free (after the VoIP Bill is paid)

3.) How is the sound quality of VOIP ??????????

and Lastly 4.)  Is it necessary for the RECIEVING PARTY  or individual such as in China   to  be equiped with some VoIP network compatability  or at least have a Phone Company that supports VOIP, or will the Voip service I subsribe to be sufficient.


Please answer as completely as you can, and I will split points if necessary!


 

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Gosh - by the time I'd written all that alandc had posted much of it :-)
Oops.  My Bad.  It's been years since I've been using EE so I'm catching back up to speed. Thanks.
Glad I could help :-)
in addition -
          linksys is selling a VoIP device that you can connect to your network - then you connect your "regular" phone to it and you can connect like that.
   You still have to sign up for service with a company but Like in previous comments is really inexpensive compared to other services.

http://www.linksys.com/products/product.asp?grid=33&scid=38&prid=651

http://www.vonage.com/

sounds like a very nice deal.  the only problem I see is the reliability of your internet connection.