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I want to clarify some points that bother me:
1. True or False If I have a character with fame, I am limited to the gp amount I can spend on an item equal to the specified amount for the fame table.
2. I can purchase an item WITH fame equal to the amount listed on the table.
3. I can purchase an item equal to the amount specified for the entry on the fame chart, AND it costs BOTH the fame AND the gold listed.

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1. Correct, except for items in the Always Available list and your chronicle sheets, both of which let you ignore the fame table.
2. You can never purchase items WITH fame. You may use prestige to pucrhcase items, but only 1 PP for a 150gp item, or 2 PP for a 750gp item (and only once per scenario).
Fame is never spent, while prestige is spent. Fame is basically your lifetime prestige.
3. N/A due to #2

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I want to clarify some points that bother me:
1. True or False If I have a character with fame, I am limited to the gp amount I can spend on an item equal to the specified amount for the fame table.
2. I can purchase an item WITH fame equal to the amount listed on the table.
3. I can purchase an item equal to the amount specified for the entry on the fame chart, AND it costs BOTH the fame AND the gold listed.
You can buy any legal item which meets at least one of the following criteria:
1) Is on the Always Available list in the Guide;2) Is on any of your chronicle sheets;
3) Has a price equal to or less than the amount listed on the Fame table
You pay gold for items. However, you can also spend 1PP to acquire a free item worth 150gp or less, or you can spend 2PP to acquire a free item worth 750gp or less. It's fairly common for people to spend their first 2PP on a healing wand.
But the bulk of your shopping will be spending gold on items covered in one (or more) of the three categories I listed.

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Then what is the best use for Prestige? Buying a merchant shop to assist Day Job Rolls? A home with a warm hearth?
1) 2 PP for level 1 wands (CLW, honeytongue, longstrider, featherstep, ill omen, etc)
2) 2 PP for useful items with a cost close to 750 gold, such as a composite longbow with a +3 strength mod, or a scroll with a few lesser restos on it
3) 5PP for a caravan to use bluff, diplomacy, or intimidate for Day Job rolls. Alternatively, a boat for profession sailor Day Jobs rolls with potential in-game use.
4) Save for a raise dead, 2 restorations to remove the negative levels, and a body retrieval

Bigrin da Troll |

And now, with Ultimate Campaign, train yourself an extra (permanent) Hit Point for 3 PP and 30 gold times your level.
Alternately, for 50 gold times your level and 5 PP, you can retrain one of your existing feats into one for which you currently meet the pre-requisites, meaning (for example) a Barbarian that just hit 8th level can retrain both her 3rd and 7th level feats (for 10 PP and 800 gold) into Extra Rage Power and choose two additional 'a Barbarian must be at least 8th level to choose this power' Rage Powers - you know, in case she wanted to take 'Improved DR' three time at level 8.