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1978. The first free agency game around because players wanted to be able to switch teams without the problems of coaches and other contracts.
Free agency began after the 1976 Collective bargaining agreement. http://www.sptimes.com/News/102299/Sports/Free_agency_era_opens.shtml http://www.usatoday.com/sports/comment/colbod.htm
You become a free agent. Lots of rookie free agents get picked up every year, if you do get picked up in free agency, you will likely get to play in the preseason games.
No it was free. That's one of the benefits that poor citizens had.
As an American citizen, as long as you have a valid passport and are not wanted by any law enforcment agency you are free to go!