You are somewhat.

: The wrings were wrought by Sauron alone - so they are altogether wholly evil.

No, the One was made by Sauron alone. The Nine and the Seven by the Gwaith-i-Mirdain under Sauron's instruction. The Three were made by Celebrimbor alone.

: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.

No. This is a very common misunderstanding. The Rings were made by Elves for Elves. Their purpose was to slow the fading of the Eldar (essentially to slow the passage of time for the Eldar), thus allowing them to remain in Middle-earth. Sauron then made the One Ring to control the minds of the Elven wearers of the other Rings, and thus enslave them to himself.

The idea of distributing the Rings to other races (e.g. Men and Dwarves) was a fallback plan Sauron invented after his attempt to enslave the Elves failed. Indeed considering the time and effort Sauron put into his Rings of Power strategy in Eregion, it was spectacularly unsuccessful.

: 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 Rings were never touched by Sauron, and were not at all evil (Elrond makes this clear at the Council). The only risk in using one of the Three in the Third Age was that Sauron might recover the One and attempt to enslave the wearer. I imagine that Galadriel, Elrond and Gandalf would each (like Celebrimbor) had had the strenght of will to resist Sauron for long enough to tear the Three from their fingers.

: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?

The Bay of Belfalast is in Ulster, but it is normally called Belfast Lough ;-)

I think the big risk of throwing the One into the Sea is that Osse might have found it - not a pretty thought.