1: No. Pick up a Vit/Mag genie and (over time) attempt to get a better one. Patience is KEY to this; you won't be given a 150/150 genie here (see spoiler)
LIKE OTHER PAST SERVERS! (which are no longer here, so rip.)
2: Dragon is the best end-game gear for PVE, hands down. You CAN use R8 just fine, especially as a psychic, though.
For PVP, R8 is the end-game gear you want. It requires 200,000 rep and takes 2-4 days to get, depending on how many times you vote per site.
Links 1 & 2 can be voted on every 6 (six) hours, while link 3 can be voted on only once a day. Links 1 & 2 both give 250 silver (2.5 gold), while link 3 gives 500 silver (5 gold).
(The PVE info is slightly biased, as it is coming from a Cleric's PoV.)
3: Yes. However, there are certain rolls you want as a psy. Just like with getting your genie, this does take time, and having patience while getting mats is KEY. You are NOT handed everything on a silver platter & are told to "go have fun." Even on a PvP server, there is quite a bit of grinding you have to do to get everything perfect.