1. Scripts go into your emulator\quests\ directory. Simply place the script into the correct zone folder. The zone folders use the short_name of the zone and if you don't know it you can find a list in the zone table of your database. Your scripts name can be the npc name or the npc id number.
3. The easiest way to make items is with GeorgeS tools. They can be found at the following link.
Code:
http://www.georgestools.eqemulator.net/
The tools also simplify many other aspects of content creation.