I never had pain in my knuckles, so I wouldn't know about that. My pain was always in my fingertips. But that goes away after you practice. About the chords getting easier as you progress question, I think they will. You'll have more practice, thus making other chords easier. About trying to play without looking, I've been playing nearly a year and still can't do that. I play for fun, and don't care whether or not I can look away and still play.

Just practice, practice, practice! I know you've probably heard that alot, but trust me... it works!