> On that note, is there a common place to install applicatons so all users can use them? I 
hestitate to install stuff in /home/bhumburg because it seems to me that only I will be able to use 
applications. Basically, could someone step me through how I should organize my file hierarchy.

You should take a look at:

   Linkname: LJ 2: The Linux FSSTD
        URL: http://noframes.linuxjournal.com/lj-issues/issue2/2756.html
 
and then download /pub/linux/docs/linux-standards/fsstnd from tsx-11.mit.edu
and read it.  It will answer a lot of your questions.