Please forgive me for this question, I am brand new to Raspberry Pi. Can this be used to stream online video? Meaning, will it support logging into a website and effectively playing live streaming video the way you would on a normal computer. Again, forgive my "oh so simple" question...
The question really depends. The Pi's media decoding hardware is pretty impressive, but it can't run Flash very well. If the website has a directly accessible web stream then you could probably use XBMC or omxplayer to play the video, without knowing the website it's hard to say for sure.
As long as it's not DRM protective content the Pi is more than capable of streaming live video.
I use my Pi sometimes to watch Live TV via TVCatchup with their excellent TVCatchup XBMC plugin.