The first thing is to agree on the definition of "producer."
Typically that is the person who oversees a project, and can include guiding an artist from concept to songwriting to performance nuances/style, and, of course, recording mixing and finishing. Other duties can be included. It's a broad term in the music business.
But your questions make me think that perhaps you're interested in producing songs, as in writing or recording them yourself. You'd be a self producer in that case, taking on the duties listed above for your own writing, arranging, and/or singing/playing project. A lot of artists have taken to doing this as ever more powerful and sophisticated gear is made available to the public in ever easier-to-master contexts.
Here are answers to the five questions.
1. What software is the industry standard? ----- Logic Pro by Apple Computer (http://www.apple.com/logicpro/). In my opinion, you can't do better. Many professional studios use this.
2. What hardware is the industry standard? ----- Hard to say without specifics. Do you want to record accoustic instruments? Electronics? Heavy Metal? Baroque? Three-piece combo or symphonic chorus? There is a lot of good gear out there, but you need to know what you want to do before you begin researching what's best for your purposes.
3) Is the music they sample typically from out-of-the-box synths? ----- I'd say it's from sources as varied as the people who do the sampling. Live sound, found sound (pots, pans, brooms, wrenches, tire tools - anything at all), digital synth, pre-recorded -- it all depends (once again) on the goal.
4) What is the process of creation? Do they start with the beat first and add music? ----- I'd say that it depends on the person. Take a typical pop or rock tune. Some writers need the lyric (the message) first, while others want the feel of the music to be primary, so they start with the beat. I'm a composer, and always start with an idea of where I want a song to go. Sometimes a melody captures my attention first, sometimes harmony. Rhythm has, too, a time or two. This is the question that made me think you meant songwriting as opposed to producing. A producer would not normally write the music, but would expect a band/singer/songwriter to bring that to the session.
5) What is the typical setup of the studio? (kinda goes with first two questions) ----- I can be your living room or bedroom if everything's digital. Even if it's a small enough combo. For large groups, especially when there are accoustic instruments involved, a controlled environment is best. Here's a good article about building a home recording studio that will get you started on understanding what's involved. (Building a home recording studio)
I hope this info gives you a bit of direction. But the most important thing I can tell you is this: Regardless of how daunting it all seems, if you have music in your blood, you'll find a way. Just be consistent and persistent.
