1). That depends on which character you're doing.
I was going to start by doing Link's before I moved onto other characters, such as Marth and Sheik.
2). Add in a Body Collision Event, and set the Parameter to 3.
I added in a Body Collision. Do I click State and change the value to 00000003? When I do so, I get the message next to the Body Collision saying: Intangible no flashing.
I guess there aren't any Starter Guides on actually using PSA... lol... But all it is really is Common Sense once you get to know what you're working with.
I wish there was like PSA 101 class. Being a noob at this isn't fun. Thank you for helping me.