Can Someone Explain Selling Puts?

I read seeking alpha alot, and all the writers constantly talk about how they sell puts bc its a low risk way to buy stocks they don't mind owning and generate income at the same time. I've read around and basically understand the gist but am still confused about how it works bc i look at my etrade for say Phillip Morris, my biggest holding and I see

$92.50 sept 21, 2013 Put @ 2.70 then i see buy open,sell open,buy close, sell close

can someone correct me if im wrong but from what I understood reading around this would either allow me to purchase phillip morris for $92.50 per share or collect $2.70/share in 3 month in option premium? That sounds like a win win.......is that how it works?

Also what quantity would you buy to say buy 1000 shares im reading 10 contract (using round number) and what order type would you choose to sell puts and accomplish that?

Thanks alot, i always wondered about what those authors meant, just never really dug into it till recently, and yes i am an amateur to this and am just looking for an understanding of how selling puts is a low risk way to buy stocks i was already going to buy as all the authors claim

So basically im trying to understand my options

1)collect $2700 on 1000 shares immediately and if it exceeds $92.50 on sept 21 I walk away with $2700 in 3 months

2)stock drops below $92.50 on september 21 and I own 1000 shares at basically $89.80 counting my premium

is this correct? Also I read you collect the dividend when selling puts?