1. $179 is probably the normal price that you'll find.
2. You can play online with dial up.
3. Not really sure of kids games that would be easy and simple. You could ask someone at a place like Electronic Boutique and they could point you in the right direction.
4. PS2 discs are both CD and DVD. No extra hardware needs to be purchased.
5. NCAA GameDay will probably come out next July or August. I'd personally recommend NCAA Football by EA Sports.