The problem is that I have no software other than basic, and I'm ok with programming but know nothing of C+ or anything of that sort. AND I have no hard disk, or the know how to link a windoze xp PC to an amiga, though I have reasearched that, it comes to a solution of hacking pinouts and terminal software. (a bit advanced for me, but instructions would be very useful)
If you have the wb1.3 floppy, then it will be easy to link your amiga. Just get a standard null modem cable and hook up your pc and amiga and use a program called AmigaExplorer. This program will setup everything for you, so that it is ready for transferring files between pc and amiga.
AmigaExplorer is commerical software, but is well worth buying. You can get it from here:
http://www.amigaforever.com/online/AmigaExplorer is also included with the AmigaForever package.
Once you have them linked up, you can install a freeware program like messydos which lets your amiga read 720k formatted dos floppies.
If you do have some money to use, then i think the best bet would be to get an cheap a1200, a3000 or a4000 with a hd and maybe a cdrom, which makes life much easier. I myself got a cheap towered a1200 from auction site and i never looked back to my a500 as it is so much more comfortable to use when you have more ram, hd and a dvdrom. I still use my a500 for classic games though :-)