Oooo fondue is awesome!
When I make it, I use normal milk chocolate and melt it with some milk or cream till I get the amount and consistency I want.
To keep it warm, we bought a fondue set for about $10 from some cheapo variety shop. It is almost like a big ceramic oil burner, but with a much bigger bowl, and you just put a tealight candle underneath the bowl of choc to keep the bowl warm. I find I have to keep stirring the choc though otherwise it goes gluggy.
We cut up bits of fruit like banana, strawberries, orange.

I have no idea what the solid alcohol refers to though, sorry.