I'm a complete noob when it comes to Guitars and I have 2 questions I hope you can answer.

I currently have a out of tune Acoustic (getting a Tuner soon though) but in the meantime im practising fingering Frets..the problem is im not sure where the first fret is as theres one a millimeter or so next to Guitar neck and another 2 inches down from it, which would be classed as the first?

Also when im playing Frets do I just strike the string on which I want to play, or do I hold the string on the fret and open play the rest?
The one 2 inches from the head is the first fret.

You just hit the string you're fretting, unless it's a chord.
Yeah if a tab for example says


Then unless they are vertically aligned, you'd hold down the string on the fifth fret on the D string to play the two 5's and then the third fret on the G string to play the 3. If they're vertically aligned, then you'd put a finger on the indicated frets on the indicated strings and strum on both strings in one motion to play the chord...

Like so
Cool thanks for the help...I can just about manage Smoke on the Water now..cant wait until I get a proper Guitar thats in tune.
Ive just been reading up and such for the past 3 days, still got to get my head around chords though, but i'll manage.
please see the FAQ in here for a few more details of the tab system.
Quote by Mia (Pulp Fiction)
Why do we feel it's necessary to yak about bullsh*t in order to be comfortable?

That's when you know you found somebody special. When you can just shut the f*ck up for a minute, and comfortably share silence.