OK, my answers to your questions:
(1) the 1.6 Gbyte hard drive should be fine unless you (literally) install everything in the distribution (which is typcially 2 Gbytes or more). You're not likely to do this.
(2) OpenBSD is a fine product, but RedHat has the advantage that more people use it (or perhaps are more vocal about using it), which gives you a better resource when you run into problems. In general, there are far more similarities between Linux and BSD variants of Unix than differences, so regardless of where you start, your knowledge will transfer readily (with just enough differences to be maddening

).
(3) I can't comment on the Dummies book, as I haven't reviewed it. However, most newcomers to Linux find that it can be difficult to learn, and that's true pretty much regardless of which distribution you select. I added a few thoughts on this topic in this thread:
http://forums.techguy.org/showthread...threadid=72508
Hope this helps.