Setting up MIDI to trigger sounds on Keyboard (basic question)?

Question by Eddie V: Setting up MIDI to trigger sounds on Keyboard (basic question)?
OK, i'm new to the MIDI concept, and have tried reading from a lot of sources including Y! answers. I still have a few specific questions i'd like to get answered.

I recently procured an old Yamaha Portasound PSS 680, and i'm trying to make optimum use of it. I discovered it had MIDI in and out. After reading for about 3 hours about this, i'd like to know if i've actually understood the concepts right, and

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