I would start slow, for example if you have money, go for a small budget, let's say $100/month, just to see what is Adwords about. If you rush with $1000/day of course you will get pissed next day and go get drunk at the nearest bar for having a huge bill and low ROI. Just a thought.
Need way more details for the questions you are asking. Bids and budgets vary depending on what you're trying to do. I've got some campaigns with $1,000 daily budgets and others with $10. The bids vary from $11 down to a penny. Like I said it just depends.
Yeah go low for starters. When you start to get a positive return (sales profits - costs) on your campaigns you can increase your daily budget. Maximum bid depends on competition in the industry, your conversion rate and how much profit you take off each sale. For example, if you expect a conversion rate of 1% and a profit of $10 for a sale, then you wouldn't want to pay more than 10 cents per click because then you would be making a loss.
For the bids it varies acroding to the industry competition etc. Start with a low budget of lets say 200$ for a month and place low bids. Once you have the ads running see how its going. Like av. position etc if its too low try to raise the bids and you will get an idea.