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1: Yes, Archery & Magic are both quite expensive. It's best as a new player to use either sword & shield or strength weapons as it's going to be a lot cheaper. If you don't mind leveling trade skills in between combat such as mining or something, then leveling archery/magic won't be as bad, but you will definitely have to sink some time into trade skills to fund those two skills.
2: Defense is your characters actual skill that you level. Defense gets put into a formula which is 3 armor per 1 defense level. From there all of your item stats and everything you have equipped also get added as armor, and then you have your actual armor stat. So, armor is like the overall stat when everything gets combined, defense is simply your skill that you level.
3: Same thing as defense/armor. Accuracy is the skill you level, aim is the stat that gets combined. Aim only matters when you're using melee. The magic & archery stat work the same as aim except they work for the according skill.
Hope that makes sense, it can be confusing at first.