HTD

I think as long as you're writing any sort of music that makes sense to at least you and a few others then you are an artist. It doesn't matter what style you write in, just as long as you're writing it. However, there is the difference then in if you can perform what you've written, which would make you a musician. Thats just my view on it.

Audacity "totally blows" in my opinion. I've never found it that good, but then again I guess its not all that bad as far as freeware goes.

I sit at the piano, find a melody, then find a working harmony and go from there. Or just playing chords in strange orders until I find a progression I like.

I see what you're getting at, but if that is your end intention, then use that. Also, if you don't like the chances of this happening compose all your pieces on a piano first, then arrange them from there.

I think as musicians we all need to make money by "selling out" eventually. So just do that if you have to make money, then on your free time compose the sort of music "you actually want to."

7th, by far, followed by the 3rd.

This is absolutely fabulous! I only hope I can write a composition like this one day. :D

Your sister isn't completely incorrect, however you won't JUST be doing atonal, or as I like to call it, pantonal music. My prof is making us do contemporary stuff at the moment, but we will be working on other sorts of pieces later on. And its not as if doing contemporary is awful, it can be quite fun.