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Helps alot, but about the 2nd part:

Are there any free alternatives to this Winrar? Zem mentions to use winrar or something similar. 

None that I know of, but if you need it for free, you can always pirate it of course lol. Alternatively, I'd recommend looking it up on google

Actually, I just thought of something: Do I really need Winrar or something similar for updating?

If you cant use winrar or cannot afford it, you can install 7zip, being a free alternative

Winrar or other programs similar to it are needed, as the game comes in a compressed file (.rar or .zip, cant remember)