Cost of Living?...Cost of living really depends on where you are in the city. If you want a younger crowd and nicer areas it is more expensive in Stare Mesto, Nove Mesto, Mala Strana, and some other core areas. However, compared to other European cities, Prague is very cheap. This may not last for more than a few years because of the Euro switch. Right now with the Czech Republic being on the Koruna, things are cheap!!!!
Are there houses (not huge just old style) in urban areas or is it mostly apartments?... In the more urban areas there are mostly apartments and flats. I do believe there are some houses. No houses like American style until you get on the edge of the city which is generally not a desirable area.
What methods do people commonly use for internet and the speed there?...When I lived there I used a high speed wireless internet signal. Generally some of the newer coffee shops, and chain places like Starbucks, Coffee Fellows etc... have wireless acess for free.
Where the hell does someone in the US learn Czech? Is it at all similar to German? While, there are a few grammatical similarites between Czech and German, it is not at all similar. Czech is a slavic language, and thus has many similaritites to Russian, Polish, Slovak and so on. To learn in the US, thats a problem. Before moving there I just got Czech languauge books and dvd's from a library or a Barnes and Noble, and tried to learn the basics. But, many people in Prague speak English, and are generally much nicer to people who cannot speak their language than some other cultures.
Are the people friendly? My experience with most of the place i've been in Europe is people are friendly when drunk LOL. That is not to say they are unfriendly.... but just kinda keep to themselves and very passive. Does that apply there?...Czech culture is very unique. Czech people are generally passivists. They do not like confrontation for the most part (ofcourse this is a generalization and does not fit everyone). Also, the Czech Republic has the highest consumption of beer per capita in the WORLD. Yes, higher than Germany or Ireland. That said, Czechs can be friendly, or unfriendly just like anywhere else.
Also of note...If you are going to move there or even live there for a period of time, go to
Expats.cz for Jobs in Prague - Prague Real Estate in the Czech Republic and try and meet up with the MANY MANY Americans who live in Prague. It is not hard to find fellow Americans over there. Hope this helps.