Ahhh so much info you need to know, so little room to put it all in. I will try to hit some of the highlights about creating a 22lr AR-15 but you may want to check out these forums dedicated to rimfire and pistol caliber conversions.
ar15.com forums Rimfire and Pistol Calibers Spend some time looking though there, you will find all the info you need and more.
There are actually two main types of AR-15 22lr conversions you can get right now, both run around the same amount ($135-150). There are some others floating about (like the VZ-22) but these are the two main ones people use.
1-- What you saw in the magazine was the Ceiner kit. Most people go this route.
Pros-- Mostly good reliability, there are 30 round after-market mags available from Black Dog that have the look of a real mag for around $30 and are very reliable, available from retail sources.
Cons HORRIBLE customer service from the company, pray that you don't need a replacement part, may need tweaking to get to run especially in NFA type full auto weapons, currently a long waiting list from the company (told could be as long as 2-3 months at times).
2-- M261 kit. Similar setup to the Ceiner (replaces bolt and carrier) used by some of the armed forces (Air Force and Army I believe).
Pros Very reliable. Magazine inserts are easy to find. Literally just drop it in, and let some 22lr rip.
Cons Not available from retail, have to find one used from someone (not really that hard to find though). No high cap magazines yet (inserts are 10 rounds), although Black Dog is promising high cap ones for them soon.
As far as accuracy these are alright. Not a tack driver, but not shooting wildly either. The big issue is that your barrel is .224 whereas the 22lr is .221 diameter.
You will get some fouling in the gas system after using the 22 conversion kit. Easy way to clean out the gas system is just drop a couple of rounds of regular 223 out the barrel after you are done shooting the 22lr--
No you won't damage your barrel with them, just get them dirty from the 22lr being such a dirty round
Will just require a bit more cleaning than usual-