1. what is the first thing to do when turning it on?
The laptop will guide you through the initial setup. if it is anything like my laptop (which I bought Feb 2008) this will consist of selecting a language, and then waiting for it to complete installation.
2. If it has Windows 7 Home Premium on it, is this a trial? how do I tell? and what relation is the Office Home and Student key I bought to this program... or is it Operationg System?
Windows 7 is the operating system. It is not a trial. Generally these days systems do come with trial versions of Office. If you bought a key though, you will be able to enter that in Office when you start it.
3. We bought Norton 360 for Security program when should this be installed? is it self explainitory?
Typically these days systems come with some sort of basic protection pre-installed. My laptop came with Norton 360, for example. (Which I uninstalled but that is another matter)
4. What is this I read about making back up disks and reboot disks? Should I use CD or DVD? My system can burn either.
Personally I myself only back-up stuff I made; that is, losing it would mean I would need to recreate it myself. For programs, windows itself, etc, I don't bother. For your case the system will likely prompt you to create a "recovery" disc, and if it doesn't the option will be available in the start menu somewhere. I suggest you do so. The purpose of the disc (or discs, sometimes) is to allow you to revert the system back to it's initial state; Basically it's like running through the initial setup again. Don't forget to back-up stuff like your photoshop work, though. if you ask me that sort of thing is far more irreplacable.
5. Also what are they talking about when they mention I need to download drivers? These dont come installed?
Who mentions this?
6. We already have a HP 5 in one printer we used for our old laptop which was a really old computer. with this 64bit one do we need new drivers etc?
Depends. Windows might already have the drivers, it might not. A <LOT> of printers do not have 64-bit drivers- at all, so you wouldn't be able to use the printer with the laptop at all in that case.