You should take a look at the examples included in the FOP package
<FOP>/docs/examples/pagination/basic1.fo
Many of the questions you have are answered quite extensively in the examples. Set up you environment to run FO files to product PDF's directly. Then test all of the examples.
java.exe -Xms64m -Xmx768m -classpath fop.jar;xml-apis.jar;xercesImpl-2.2.1.jar;xalan-2.4.1.jar;batik.jar;avalon-framework-cvs-20020806.jar;bsf.jar;jimi-1.0.jar;jai_core.jar;jai_codec.jar org.apache.fop.apps.Fop <<(FileName)>>.fo -pdf <<(OutFileName)>>.pdf
Hope that helps.
Pete Solberg
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