Also does it have all general internet surfing abilities, youtube, email, etc? Which is the best but not over the top version to buy...basically I would love it I can play music on it in my car and use sort of as a laptop to surf the net.
In a word; no it does not have ALL general internet surfing abilities. There are limitations imposed by the fact that Apple does not, and likely will not (ever) allow Adobe Flash content to be displayed on the iPad or iPhone/iPod Touch.
So many websites that display flash content or video cannot be directly accessed via the web. Some have gone over to the "App" environment to work around the problem that Apple created by not putting flash player on the iPad (for various security, speed, 3'rd party software, and content marketing competition reasons). So many websites you visit will have blank areas in the pages where flash content (video or adversisements) will not be displayed. YouTube, AT&T U-VERSE ONLINE, and Hulu are examples of websites that will not work via Safari or any other web browser app. Hulu and YouTube have separate apps that will allow you to watch their content on the ipad; but U-Verse does not (yet). A bit ironic since AT&T is the 3G service provider in the USA...
In addition, windows that have interactive content (like mapquest) become very difficult to navigate because they were not developed to be used with a touch-screen device. So scrolling the in-screen window does not work properly (even 2-finger scroll does not work on mapquest). There are also apps that provide a work-around like the e-mail app, google earth app, and maps app. Don't expect every website to work flawlessly with the iPad; because many do not.
The iPad currently also does not have an 'open' file system; and it is difficult to transfer documents and/or do "office" type work on it. There are "USB Disk" apps that allow a work-around; and iOS 4.2 which is coming out soon should also add some file management and printing support. With no USB port documents must be sent via e-mail to another computer to offload items. There is a USB/SD card adapter that will allow photos to be uploaded/downloaded from either a Camera or memory card; but I dont' know if it can handle document transfer (I'm thinking it can't). Simply put; the iPad is not a personal computer replacement. The iWork suite that Apple markets is a minimum package to allow document editing/viewing but it is nowhere near what the MS Office suite can do and many people complain that it can't do everything it claims it can do (like editing full blown MS Word and Excel documents).
If you can live with the browsing difficulties, and file system/compatibility limitations; it is a great, user friendly device (albeit expensive for the performance comparison to a laptop PC).
I would recommend a 32GB with 3G since you are talking about using it primarily as a mobile device. If you can afford the extra $100 you might want the 64GB if you plan to have LOTS of music, pictures, video content.
HTH...