The One Ring of Power was wrought be Sauron alone. THe others were made by the Elven-smiths of Eregion under Sauron's guidance.

: His plot was to give them to all the "good" races of the middle-earth ie. men, dwarves, eleves, etc, and with his ONE ring (the ruling ring) he could eventually contoll the thoughts and deeds of those who weilded all the others, and in turn create a black evil middle-earth in which he would be the ultimate king - the Dark Lord.

Basically yes. His original goal was probably to ensnare the Elves only, but when that failed he made war upon Eregion and captured all rings except the three Elven Rings which were hidden and sent away. He then perverted them and gave nine out to Men and seven to Dwarves. The nine rings worked on Men, turning them eventually to the Ringwraiths. The Dwarves resisted the power of the rings, so they were not turned to wraiths, but the rings neverless had an evil effect on them.

: My question then is this, in LOTR1 it is said that Galadriel has one of the eleven rings. Why then, if she knows it is evil, does she still wear it???

The three Elven (I'm assuming that's what you mean) Rings were not perverted by Sauron, and are therefore not evil as the others which have.

: Also if Frodo had just cast the ring into the Bay of Belfalast or whatever, how could it have been recovered?? certainly no fish or any marine life could have weilded it, right? Or wrong?

Frodo never cast the ring anywhere, certainly not the Bay of Belfalas.