Setting margins and page size for print

You are right and wrong.  It stems from terminology and taking this a bit literally.  Yes, margins do not print.  However, they do print.  Typically you set margins as "guides" for page layout and it ends there.  If, you have elements that print in the margin areas, then they ( the elements ) will print.  Let's say you have a business card layout that equal 2"h x 3.5" w ( horizontal ).  You can set a margin of .25" all the way around the card as a guide. Now you apply a background bleed color of 100% Black at 2.25"h x 3.75"w ( 1/8" bleed all the way around ).  Eventhough you have a margin of .25", the Black will print entirely including the bleed.  Now, Page Margins are different.  Most desktop printers do not include bleed in an 8.5" x 11" page size.  For instance, my inkjet printer has non-printable areas or page margins that do not print.  They equal something like .139" top, left, and right with a bottom margin of .6".  Unless your printer has an option for "borderless" printing, there is a non-printable margin in the Page Setup.  This is different than layout margins which are printable and used as guides.  So, if your desktop printer does not have "borderless" printable areas ( option found in Print > Page Setup ), you'd have to print your 8.5" x 11" layout on a larger page size and then trim it down later.  Let me know if you have any other questions.  I hope I cleared it up for you.  Let me know if I didn't.

For printing pages, your margins should be .5 or 1.00 depending on your font size and amount of text in an area.

There is no bleed for pages as pages are printed according to sheet size.  Only artwork requires a bleed area.

The best thing to do would be to contact the printer though, that way you don't have to pay for errors in resubmission for print.