>Do they need to be out side?
Outside housing is preferred as often as possible during appropriate weather; however, such housing must be escape & predator-proof, provide shade & shelter, have good drainage. That said, supervised visits do allow basking in the sun for UVB if the area is pesticide/herbicide-free.
>Can I house them inside all the time?
In a habitat as large as possible for the species. Provide fresh water, interesting terrain, a good UVB bulb, a VARIED diet.
>Also are there any of the smaller to med tort that do not need to hibernate but would be good as a first tort?
Two of the smaller torts are the Egyptian and the Pancake, which have been maintained inside successfully! Although these do not hibernate, they do aestivate (less active, infrequent feeding). I find the Pancakes easy to keep, fun to watch. A friend has Egyptians, which he says are similar in activity and personality! See "tortoise classifieds" for possibilities.
Again, all species benefit from time in the REAL sun!
Many species have websites and Yahoo groups devoted to their care; check these out before deciding!!
HTH,
Pat