I can confirm the first two statements:
2. Open the confirm.php and follow your instructions.
To answer the questions in order:
Yes, you will need to have eCart installed for this.
This will only be available once eCart is installed.
Yes, you need to have a testing server defined to work with the dynamic data. I would suggest that you develop and test locally before putting the files up to your live server. Here are some guides on doing this:
Testing server on windows
setting up a dynamic site in DW