You see your characters quite a bit actually man - there are town areas and action areas, and I'm guessing you haven't seen a town area yet.
I only had trouble with a couple of the quests, but maybe the area I was in had less issues than your area. I never tried pressing x to talk to people - just click on them with the mouse if they have a big huge white glow expanding into the sky from them
The objective marker does a pretty good job of pointing out what you should be doing I found - so if it is pointing somewhere on the map rather than at the person who gave you the quest, you've still something to do! Only people who you are currently doing a quest for (those with a white question mark icon over them), those who can offer a quest to you / you've completed a quest for (those with the white tower over them), or those who can trade/teach you (the cog wheel icon) can be talked to - nothing happens on non-iconed characters when you try and talk to them.
I found that you level pretty quick in the game (I reached level 17 over the weekend), so I wasn't too bothered about not switching kit every level or anything. Once you get into the towns you will probably find it easier to pick up extra weapons, armour and equipment. What pissed me off at first was the sheer amount of broken equipment I'd pick up from combat and destroying the environment, but the apparent difficulty of learning the crafting skills necessary to fix anything up. Eventually I figured the crafting system out and got quite good with mending and building power supplies, but it was far from made obvious how to go about it.
Sounds like you suffered a whole lot more from bugs than I did to be honest. I kept all my quest completion info whenever I logged off, and I only crashed to desktop once through the whole weekend. Only a few quests seemed bugged to me - finding the "halon gas actuator", which was about a level 10 quest I think, was taking people hours of mindless slaughter against helpless scavs in order to get for very little exp/money reward, and a few missions had the title "(null)" with no description or objective - everything else seemed to work pretty much as expected.
Bad news - the chance of it being a free game are pretty much nil, or at least everything I've heard about it point to it being a monthly fee game. I'm still interested in it, but there are definately aspects of it that could use improvement.
How did it run for you btw curman?
And seriously, WTF FERRET?!