I have two questions:
1-How do you tell between a proof, a impaired proof and a well struck, well preserved full of lustre business strike?
2-Any good coin keeping software out there? (Perferably free)

Thanks so much in advance

You will be able to differentiate proofs from buisness strikes by looking at a lot of proofs and a lot of buisness strikes. It's easiest to tell the difference with modern US coins. The mirrored surface from specially prepared planchets along with the superior strike is pretty easy to contrast with even excellent buisness strikes. It may not be as easy with some other kinds of proofs - but get used to the easy differences first.

Well, generally, the term "impaired proof" means, to me, a proof coin that has seen some circulation or has been subjected to a very harsh environment. Sometimes, folks will be lucky enough to find a proof in circulation - often times you can know, unequivocally, that it is a proof because of the date/mintmark. So, if you receive a 2002-S Lincoln cent in change, you know it is a proof, because only proofs were intentionally made with the 'S' mintmark.

As for software. Look around. But be careful, it is very easy to think about cataloging your whole collection only to find that the amount of work necessary is overwhelming. On the otherhand, you can put together your own software using a common spreadsheet - that's a good place to start, in my opinion.

Off to the coin shop to see some proofs!
Do you have any examples of mint marked proofs in Canadian coins?
I think that it would be better to start cataloging now, seeing as I have less than a 100 coins.

If you have Microsoft Office on your computer there should be a program called Excel and one called Access. I use the one called Excel. You can make your own spreadsheet for free with that. If you don't know how, there are about several million people that do know how. One of the many nice things about Excel is how many people know how to use it so any time you have a question you can try a freind, try here, try anywhere for an answer. I've done that so many times people are starting to tell me to go buy a book on Excel. By the way there are many cheap books available on how to use Excel.