Note it's called a village, it's not a city. This is a different world...he's an orphan who's parents likely died fighting the kyuubi (be they hokage or commoner), I doubt they'd just let him rot. Do you see any homeless in Konoha? Or anyone bitching about taxes? No, because it's a village, and everyone contributes. However, I doubt it's Konoha's only school. You see people with other trades, and their is a digital world in "Naruto-verse," it's just none of this concerns Naruto.

And also, since the 3rd chose the 4th, it's quite likely they were very close. If he was the professor, he'd know what Yondaime was going to do...and he'd be there with him in his fina; moments. Also, I think the soul can be sealed in anything. Shukaku was sealed in a teakettle, no? And Piccolo in a rice cooker? [img]i/expressions/face-icon-small-tongue.gif[/img]