Perhaps if you checked out:
http://www.eqemu.net/Guide.htm
1) You don't need Kunark
2) see
http://www.eqemu.net/Guide.htm
3) see
http://www.eqemu.net/Guide.htm
4) With those specifications - the server may be a little laggy.
5) The specifications of your computer would not allow you to host all eq zones/and even if it did - it would be as slow as a fish trying to swim in peanut butter.
6) You can have whatever items you want - its your server. Use Eqadmin to create your items.
7) Yeah - if you wanted to.
Make sure to check out
http://www.eqemu.net/Guide.htm before asking more questions...