Yes every two inches is correct, tamp every two. I still would not use sand at all on top for the last inch. #9's are the way to go. It is easier to work with and locks together to provide more strength. You do not tamp the #9s at all by themselves. However, when you are done laying the patio out and cutting it in if needed, you sweep a polymer sand over top and tamp out your pavers. This will compact them nice and tight to the ground while at the same time vibrating the polymer sand into the cracks.
Once done you sweep off the remaining polymer sand wet it down to activate the polymer to harden.
I prefer not to use edging as well for patios. It always tends to rise back up and get pushed out by the dirt. If it is the type of edging that goes under the soldier (outside paver) it will uplift that as well. Mortar works a lot better and will not move.