power Diecimila with computer power supply

So.. forget about the valves. I'll get different power supply. So say I'm powering the arduino. I move the selection pin from usb to ext.

  1. Should I put the regulated 5V from the power supply to Vin on the Arduino or the unregulated 12V from the power supply to Vin? And Do I put gnd from the power supply to one of the gnd on the arduino?

  2. After I load the program onto the Arduino, and unplug it from the computer, how to I tell it to run when I use the external supply?

Thanks!