Sheldon Brown has all your answers. You can shed that "noob" complex that you have in no time!

Dropouts are parts on the frame where the wheel fits. Great link with pics.
http://www.sheldonbrown.com/gloss_d.html#dropout

Fixies is a reference to "fixed gear" bikes. Mr. Brown gives you all the info you need to make your own.
http://www.sheldonbrown.com/fixed/index.html

If you had not seen this site before, enjoy!

And unless you really need this bike up and running soon, you should consider doing much of the work on it yourself. Considering the tools and things you may need to get, it may not necessarily be cheaper, but you will learn a tremendous amount from the experience and you will make up the costs down the road by continuing to do your own work.

- Jeff