Yep - that's 2nd Edition. Specifically, I think it's the revised printing of 2nd Edition that came out right at the end of TSR's lifespan; the opening page says, IIRC, "This is not 3rd Edition!"
So, any specific questions?
Yep, definitely 2nd edition. The final revision before 3e dropped in 2000.
Honestly...why are you going backwards? If the reasoning is vague, consider not bothering to do so, because frankly, it sounds like you've got a LOT on your plate right now with fantasy RPGs, so sticking with one or two sounds ideal for you.
Assuming you don't walk away from 2nd edition, however, here's some tips from my crazy-long 2e campaign...one of the few, I must say, that ever went from start to finish (took about a year or two).
- A lot of the rules are denoted as optional, especially in that specific book you have (2e revised), as well as the DMG. You should endeavor to keep it that; i.e., cut the chaff from the wheat, and ignore a lot of the optional stuff.
- 2e is really nothing but a logical refinement of 1e, but it also misses the boat on a couple things. It's got a lot of disparate systems (something 3e and later systems fixed big time), and save or die is all over the place (though maybe slightly less so than 3e). The point is, anything that applies to 1e probably CAN apply to 2e, if you wish it to be so.
- Wing it. Depending on how many supplements you add on, you'll quickly realize that the authors of many of these were just winging it, so you might as well do the same. Keep the game fast and fun, and don't worry about the rules too much.
- Thaco's easy, but not necessarily simple for the "not-so-good-at-math" to grasp, so don't be hard on people who don't get it. This is a primary reason why I mentioned not using 2e if you don't have to: if people are used to "roll high = good," you'll OFTEN find that 2e doesn't do that, which is a pisser.
- 2e doesn't ooze the same kind of feel and mood that 1e did, nor does it have the dungeon-punk feel of 3e and up. It's just kinda "there" except in the case of a few well written supplements or setting books. If you stick with "core" 2e, it's kinda like any other fantasy game ever. It'll be up to you as the DM to really evoke the mood. But if you go with a cool setting, like Dark Sun or Planescape or Ravenloft, then you may find it easier to make the game feel original/different/moody/whatever.