I'm confused about how to apply the separation axiom.
1) How does it follow that for a set $A$, $\{x\in A:x\not\in x\}$ is a set?
(a) Before I even start, what is $\{x\in A:x\not\in x\}$ in the axiomatic approach? In the usual life it is the set of all elements of the set $A$ such that $x\notin x$. Should I still treat it like this, or does it have some more formal definition? And how to formally justify that it is "the same" as (does it mean "equal to"?) the class $\{x: x\in A\land x\notin x\}$?
(b) By the separation axiom, there exists a set $B$ such that $x\in B\iff x\in A\land x\notin x$. I suppose the next steps should be $x\in \{x\in A: x\notin x\}$ iff $x\in A\land x\notin x$ iff $x\in B$, and so by the extensionality axiom $B=\{x\in A:x\notin x\}$, so the RHS is a set since the LHS is known to be a set. Is that the right reasoning? I'm not sure about the iff in bold above. In ordinary reasoning I have no doubt about that, but since I'm working in formal axiomatic system, I'm not sure what exactly it follows from. (If I knew that $\{x\in A:x\not\in x\}$ is equal to the class $\{x: x\in A\land x\notin x\}$, I guess that would clarify things.)
2) How does it follow that $\{x:x\in A\}=A$? Again, the separation axiom says that there is a set $B$ such that $x\in B\iff x\in A$. By extensionality, $A=B$. But I don't see how to deduce what's needed.