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ok just a couple of questions here :
1. What is plesk? and is it good. I have been on their website, and i have notced that it is free for one domain, which is all i have 
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Plesk is a control Panel. Definition according to plesk -> "Plesk Server Administrator (PSA) software simplifies the configuration and management of UNIX-and Linux-based web servers. The browser-based interface allows administrators and their clients to access server DNS, Mail, FTP and web hosting services from anywhere in the world 24/7."
In my opinion I think plesk is great, but some people have their own personal preferences of control panels such as:
http://www.cpanel.net ,
http://www.ensim.com and there are a whole bunch more. Plesk also has an online forum in which you could ask questions to get more detailed answers...
http://forum.plesk.com/
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2. What email server do u use to send and recieve mail? and is it easy to setup
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During the installation, plesk installs qmail (mail server) by default, so you don't need to install it.
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3. what firewall software do you use, free hopefully, as its a small server.
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I myself use IPChains a list of more can be found here:
http://www.linux-sec.net/Firewall/
Some more are PortSentry and PMfirewall, (I don't have links handy sorry.)
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4. what is a gateway, and what does it do, help on that would be very much apprichiated
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Don't really know what you mean by "gateway" here. Maybe someone else could help you on this one. Do you mean merchant gateway, perhaps?
Have a nice day...
