Joanna,
I can relate with the dating past. I never really asked out girls, but have had girls interested in me. Because that's not my cup of tea, I have always avoided dating. While I could have dated men, finding a boyfriend has always been difficult since I am still living in boy mode. Which sucks because I really want to have a boyfriend.
Dress how you usually dress. Depending on where you go out, you shouldn't need to go all out. It would be weird for you to pick out a nice fancy dress for a night out at the movies. It depends on the setting and everything. Just make sure you look nice

Yeah, don't worry about not putting out on the first date. That shouldn't be an issue unless you are dating a weird creepy pervert. As darkie said, you are never obligated to have any sexual contact on the first or any date. When you are comfortable you should proceed. And don't let any guy try to force you into doing something you don't want!
There is nothing wrong with fantasizing about meeting a prince who will take care of you and love you forever. However, it's important to remain in reality. You don't want to rush in with anyone until you are certain of the relationship . If you are too impulsive, you could find yourself in a very unhappy situation.
Lastly, be careful on craigslist. I'm sure there are nice men on the site, but you never know who you could meet. Take safety precautions while you are out and make sure you notify people you are close with about where you are going and with who. Online dating can be dangerous for all women, but it is even more risky for us. Just be safe.
Good luck and have fun!