There are lots of tutorials on transplanting. Read the stickies in the basic grow forum. You can transplant once they have their first set of true leaves, the ones that are serrated. I wait for two sets but my starter pots are a little bigger than dixie cups. You can sink them directly into the FFOF. As for watering, again you need to read up but generally, water them in after transplant and then water once every 3 - 5 days. You will get a feel for what they need. Also, their needs will increase as they get bigger and again once you flip to flower.