I got a hooka too man. They are great party items. To get to your questions though, you dont have to use charcoal. However, if you do, don't fill the bowl. I did not get to view your picture, but yours cost the same as mine and mine has a pretty damn good sized bowl. When I fill my bowl w/o using charcoal then you will not get big hits and it will be hard to keep it lit. So if you do decide to use it w/o charcoal then only fill the bowl like a third of the way full.
Now if you do go get some charcoal you can easily get them from your local headshop. In the US they are generally like 12 dollars for 10 of them. Not to bad, but if your local headshop is 20 mins away like mine it generally gets annoying going to get them every week. Now when you get them just use a few good quality lighters on it. Helps if you have a friend or two, hence party item. When you first start to fire the charcoal up you will see it 'sparkle' or 'fizz' all over the entire charcoal (generally starts in the middle and works it's way out, or starts on the edges and works it's way in). Once this has happened keep the lighter(s) on the charcoal. After a few seconds you will start seeing it 'glow'. Generally looks like bbq charcoal. Once this starts to happen start moving your lighter(s) to other parts of the charcoal and start small 'hits' through the hose. DO NOT take hard 'hits'! I warn you the first few hits will be nothing but charcoal and will taste like shit. Once the entire charcoal is glowing orange/red you may hit away. You can also pick up the charcoal with the tongs and see if the bud is lit. Everything should be 'glowing' or on fire, including the bud.
PS a small trick is get the charcoal glowing and have a friend hold it up with the tongs while you fire up the weed a bit. Then place the glowing charcoal back down on the now glowing bud.
Happy Smokin