n00b question about armor upgrades

just wondering how getting "final" armor works. still only lvl 12 and i havn't even encountered an armor upgrade yet but i was wondering how it works. You get the best (highest AL) set of armor at the forge, then stick upgrades on that armor? Basically, i was just wondering how much stuff you have to stick on --- and if runes and upgrade components "compete" for space on the armor.

and weapons --- you just get a max damage one then stick on two upgrades and you're set?

any help would be awesome, thanks
-eme2512

http://www.guildwarsguru.com/rune-listing-id29.php

edit

add them at any time but if you get better armor along the way (advised) you will have to expert salvage the old armor with a good chance of losing the rune and having to find/buy it again

THEY DO NOT STACK SO BEWARE

if you try 2 minors of the same type only 1 will work
same for a minor and major/superior