Europe Visas, 1-2 year travel?

A friend and I are thinking about backpacking around Europe and Asia for a year or two. We still need to figure out our visas! If we have a Schengen Visa can we work while we travel? Are we only allowed to stay in those 25 countries for 90 days or is it 90 for each country? When we travel to other countries can we stay for a total trip (including the 25 already) for more than 90 days? Do all european countries require a visa? Is there an application fee for all of them? Does it make it easier if you are a dual citizen of US and Australia? Can we loose our US citizen ship for any reason? I don't think I have anymore questions. Thanks!

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