<< i have a quick question, runlevel 5 is multiuser with X and networking, blah blah. but if i boot into runlevel 2 and then startx, does it put me into runlevel 5? >>
No.
<< another quickie: what is the "right" way to make something start up at boot? >>
Not really a correct way to answer that, as it depends on what it is you're starting at boot. Services should usually have their own script in /etc/rc.d/init.d/ (in Redhat, Mandrake, etc) or /etc/init.d/ (Debian), utilities such as hdparm, and things of that sort can be started from rc.local.
<< i've heard people talk about a file called rc.local. i dont have this file, nor a man page for it, what is it? >>
Its a script in /etc/init.d thats symlinked in the runlevel directories usually as S99 (so it starts last).