new to cycling, need to fix pain

It's a bike fit problem. The bike needs adjustment like seat height, possibly crankarm length, saddle fore-aft, etc. You don't specify where your knees are sore, so the solutions aren't obvious. Get to a local bike shop which is reputable. It you don't know, ask a local enthusiast cyclist where to go. Find their specialist on fit, not the first guy who waits on you when you walk in. I just paid for a fitting on my TT/Tri bike; 90 minutes of consultation cost me only $80. I expect that was money well spent.

Also. When you stand, walk, and run, do your toes point out or in?

When you pedal, do your knees go straight up and down or do they move toward and away from vertical during the stroke?

I get that too if my seat is too low. I now put it as high as possible (that is just before I need to start rocking my hips to reach down at the pedal). But that is just me, your problem could be different.

pics are posted in an album. i bought the bike for 80$ just to get through this year, the first time i rode this one was my first time on a road bike. the plan is to get a new one sometime next year if i'm going to keep racing. it's not what i would prefer but it has been completely rebuilt so it is in pretty good shape.
i cannot touch the ground while sitting and to respond to dave, my toes point straight while running and my knees come pretty much straight up while riding.

Cool bike, I like the purple polka dots.

1st race is in OCT but i'm told it should be easy to find for T1!