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Do keep in mind that the commands from the bottom of that FAQ will result in a self-signed certificate. This is probably what you want initially as it allows you to test SSL functionality, but it is not 100% secure since you issued it to yourself, effectively. For a production environment you'd want to get a certificate from a certificate authority such as Thawte or VeriSign.
I don't think the certificate is any different from one you can make yourself. What you are really paying for is a third party endorsement that you are who you say you are.
The difference would be in how much people trust your site rather than in how hard it is to crack. With self-signed certificates, basically what you are doing is saying "hey look at me, i'm trustworthy!" and since pretty much anyone can do this it doesn't pack as much of a punch as when your certificate is signed by a global certificate authority. Wether it's worth the money depends on how important the customer's trust is, obviously.
Yes, you could specify the number of bits along with the algorithm to use. So if you're following the FAQ, replace "rsa" with "rsa:2048", that should do it. How much more secure that really is compared to the already pretty secure 1024 bit default I couldn't tell you.
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