Hmmm it's interesting you think I'm a river country, Menolly - that's certinly what I chose when I set it up (thinking it'd be good for trade), but my own description has for some reason always said tropical! (And it may have just spoiled my cheese-producers alliance forum piece about the state of my gourmet culture
)
As for set up, I had no idea what was coming, so I looked at the political grid which is over in the nationstates.net thread somewhere, chose what form of government I wanted (benevolent dictatorship), and answered the questions accordingly (ie I needed great civil and economic freedoms, very few political freedoms).
It's more complicated than NS1, but at the moment anyway, you can't 'lose', so you need to decide what's important to you. Does reading about people starving in 'your' country bother you? If so, then try to pick issues that will start/grow your food industries. food seems to be the most important of the (can't remember the word - the needs of your population) as when it's short, industries like sheep and wine that are normally used for clothing/medical, change to being used for food. or dancing monkeys from entertainment to food.
Also beware of choosing options to issues that will kickstart 'needs' in your population. of course they'll always need food and clothing and energy, but some options will also start a 'need' for entertainment or materials, and once your country can't produce or buy enough goods to satisfy their needs, then your people suffer in various ways and to various extremes.
Also, I think the 'trade' bit you mention, is to read the trade FAQs, which are confusing until you get a few turns into the game, then fall into place.