QUESTION ONE: is this an okay light to use? if it's not, what should i be using.
No, I'd use CFL Lighting, even a fluro, pretty inexpensive at most grow stores. Although come flower time, invest in at least a 400HPS light, you can get a cheap one at HTGSupply.com, I know your on a budget as we all are, but if you don't light them properly your going to be very disappointed. If you can't afford to grow, don't grow till you can afford to.
QUESTION 2: how much water should my plants be getting?
About every 3-4 days, I go by when the pot feels very light, water them vigourously, pick up the pot, wait 4 days, pick up the pot, this is what it should feel like when needed water. Go by that rule of thumb, or you can stick your finger in the drain hole and see if its starting to dry out.
QUESTION 3: what can i do to improve my plants? [chemical-wise]
I wouldn't give them anything your first time, if you do, again if your on a budget your not going to like the price tag, but Fox Farm Trio pack, (Grow Big, Tiger Bloom, Big Bloom). It'll come with a feeding chart, go 1/2 stregth.
QUESTION 4: about how long until i can smoke it?
55-65 days after flower you can harvest genereally, every strain is different. I recommend vegging for 4 weeks (vegative stage, after the seedling stage).
QUESTION 5: i often blow weed smoke on them, because someone said that was a good thing to do. is this true?
Doesn't do a thing. LOL.
QUESTION 6: what am i doing wrong, that i can fix for real cheap [i mean.. real..cheap].
Nothing about growing cannabis is cheap in my experiences.
QUESTION 7: what will i need in the long run for these plants to survive?
Water, Light, bug free enviorment, cool temperatures. Patience.
QUESTION 8: if i grow this weed in my basement, will it get a funny smell/taste? someone said it's not good to grow in an unfinished basement.
Mold. Humidity, pests. These are the 3 prolbems with unfinished basements. I'd use some bug bombs can clean the best you can in the area your growing in. Get a reading on the humidity and temperature. 5.95 at homedepot. You need this.

Hope this helps.