Currently, a K2 Entry is like this, standard:

Date: Monday, April 23 2012 11:27:00 pm EDT
Title: Love Tangrams for iOS (Video)
Author: By jazz1m

I would rather it look like this:

Love Tangrams for iOS (Video)
By jazz1m on Monday, April 23 2012 11:27 pm

1. What do I need to do to get the Author and Date on the same line?
2. How do I get rid of the "EDT" (Time Zone I assume)

Please help. I'm new here.

I think you must be overide template:
copy all php files from ROOT\components\com_k2\templates\default
to ROOT\templates\USING-YOUTEMPLATE\html\com_k2\templates\default
edit item.php file and change order by:
<!-- Item title -->
<!-- Date created -->
<!-- Item Author -->