So I finally got a chance to rent this baby...how am I doing?

[Queen Anthai]

I need a wee bit of guidance, methinks.

Not only am I bereft of a strategy guide, but this is totally a rental. Meaning I don't even have so much as an instruction booklet. I've had to kind of wing my way through this game blindfolded.

I just entered the Royal Palace Of Rabanastre. I am at Level 5 and I have a Broadsword, Leather Clothing, a Leather Hat, Cure and Fire magics, and the Orrwhatever Bangle. I've got roughly thirty Potions and three Ethers. I've been on the Rogue Tomato hunt and gotten into the Clan Hall.

Am I remotely anywhere near where I should be level- and equipment-wise, or should I just download a walkthrough and start over?

This is my first time playing in a MMORPG-like battle system. I am not all that good at it, but I'm starting to get the hang of it. If only Vaan was faster, I'd be happier.

Also, is there any purpose to the elemental Stones that are dropped occasionally, other than to sell for gil?

[Kawaii Ryûkishi]

Am I remotely anywhere near where I should be level- and equipment-wise, or should I just download a walkthrough and start over?

It's pointless to worry about your Levels and equipment unless you find yourself dying all the time. If you're staying alive, you're doing fine.

This is my first time playing in a MMORPG-like battle system. I am not all that good at it, but I'm starting to get the hang of it. If only Vaan was faster, I'd be happier.

Battles go much faster once you have a full party of three members.

Also, is there any purpose to the elemental Stones that are dropped occasionally, other than to sell for gil?

The Stones are just a form of loot, the sale of which will be your foremost source of income. You'll be getting a lot of it.