Hi Amit,
This is an important question, and how you address these errors and warnings depends on your experience level and the needs of your site. It's also a tremendous opportunity to further your SEO education.
For many folks like yourself, the best thing to do is to tackle each one of these issues one at time, learn from online resources until you are a near expert, then move onto the next one.
Each site is different, so there's no "one size fits all" solution. The exact "fix" will always depend on too many variables to list here, but here's some tips to get you started.
1. 4xx Errors. The best thing to do is download the CSV of your crawl report and open it in a spreadsheet program. Find the URLs that cause the error, and in the last column find the "referrer". This referrer will tell you the URL that the bad link was found on. If you go to this page, you can usually find where the broken link originated and decide if it needs fixing.
2. Too Many Links - This is a warning, not an error, so you may choose not to fix this. To understand the warning further, I recommend reading this article by Dr. Pete:
http://www.seomoz.org/blog/how-many-links-is-too-many
If you decide that you should address the pages with too many links, you can then start to decide which links you should remove.
3. Canoncial - Finally, these are notices, which aren't necessarily bad, we just want you to know they are there. For a little background, you might want to read the following:
http://www.seomoz.org/blog/complete-guide-to-rel-canonical-how-to-and-why-not
http://googlewebmastercentral.blogspot.com/2009/02/specify-your-canonical.html