well the answer to your first problem is pretty easy: the engine has no torque down low. Every ATX does that, to some degree. If you want a good(er) launch, then you'll need to torque-brake. Step on the gas and brake simultaneously. Load the engine up to about 2600-3000 (it can vary on the car) while keeping the car from moving with the brakes... then let off the brakes.
There is an art to this; if you don't rev the engine up high enough, it'll still bog. Rev the engine up too high, and you'll just sit there and spin the tires... and eventually blow your tranny up.
You'll find that if you graduate letting off the brake a little, you'll cut down on instant torque, making the tires much less likely to break traction and still getting the benefit of Torque braking.
Hopefully this goes without saying, but please don't do this for more than a couple of seconds at a time. You will burn the fluid in your torque converter real quick if you sit there with your TQ at stall.
To answer your second question, it sounds like your Power Steering Pressure (PSP) switch is out. This switch detects pressure in the power steering line (like when you turn the wheel) and bumps engine idle up to accommodate.
This can be (mostly) cured by resetting the idle. Disconnect the battery and step on the brake pedal for about 30 seconds to drain any residual power. Reconnect the battery, and turn the car on.
Within 60 seconds, turn all your loads on. Crank stereo up, step on brakes, turn A/C on to MAX (hit the MAX button), roll windows down/up, TURN STEERING WHEEL both directions, shift into gear (with brakes on, of course), turn rear defrosters on, high beams, and foglights if they work.
This will put maximum strain on your engine accessories, teaching the computer what it needs to set the idle at so it doesn't die when you do them in the future.
Then, go out and drive it for 20-30 minutes with varied driving styles (i.e. floor it a couple times) to let the computer figure out fuel mappings and whatnot.
And yes, if you don't know the maintenance history on the car I'd start saving up for plugs, wires, rod bearings, valve cover gaskets (are your plug wells full of oil?), water pump, etc. etc. etc... you'll feel a lot better when you know they're all new. Add O2s onto that list.
