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I have done several backpacking trips in Europe so I will help where I can.
The most important thing when you get to any new area is to find internet access. I didn't bring a laptop because hostels and hotels in Europe lack in the security department. I would just find an internet cafe.
Hostelworld.com is the site I used most often. Simple and efficient.
Score a prepaid phone at a local pharmacy or department store. They are cheap and work fairly well. I used one while in Spain....no problems there.
Eurail passes depend on where you plan to travel and how many days you spend travelling. I have done a month long trip with the Eurail youth pass. It did give us some peace of mind knowing we could hop a train if we needed to. The biggest problems are the restrictions, and the price. I think I paid about $500 for the pass and would have saved a lot of money just buying regular tickets. It did, however, save me a ton of money on the chunnel train from London to Brussels. I would say that if you are going to be there as long as you are....forget the rail pass. You won't use it enough to make it worthwhile.
I have used several airlines over there Ryanair, Easyjet, Clickair...all very cheap and efficient.
My bank allowed me to make ATM withdrawls and debit purchases with no service charge. Check with your bank. If you can get around the service fees, ATMs will give you the best exchange rate.
Have fun man.....I'll be out there in a couple months.
oh....if you're in Spain and can get there....Check out Granada, it's amazing. Hit up Amsterdam too if you can.