Basic means not fancy. If you put the enlarger together and it is sturdy and straight and each part that is supposed to be level and parallel to the other parts is level and parallel, and if the light shines evenly where it is supposed to shine, and if it is easy to adjust the height and the focus and the height and the focus stay where you set them, then the enlarger is capable of good prints.
And as for the lenses, assuming they haven't be damaged, and that they are clean, they will most likely do fine with reasonably sized enlargements. 8 x 10 should be fine, and 11 x 14 may be as well.
OC refers to the Kodak safelight codes - OC is the most useful. You will see reference to other codes as well, like OA. Here is a reference: http://www.kodak.com/global/en/profe...845/ti0845.pdf
If you have somebody to show you the ropes, you can probably experiment with the paper. Otherwise, I would recommend starting with a fairly large package of 5x7 paper.
And as for the Kodak Opaque? It can be used for retouching negatives, so I would suggest you keep it.
Negative retouching is excellent for building the capacity for quiet patience.