When you throw a ball it flies in a parabola, right? But actually that parabola is just one end of a very long, narrow ellipse, with the Earth's centre as one of the foci. If you could "turn on noclip"[1] and allow the ball to fall through the Earth, it would already be in a stable orbit.
(If you want to get a better intuition for this kind of thing, play Kerbal Space Program)
[1] And if the Earth were a point mass located at its centre, which it isn't. And ignoring air resistance.
If you have other planets in the system (like our solar system does), things are more complicated. Orbital stability then depends on the arrangement of other planets. You are right in pointing out that the Earth's orbit is (possibly) unstable [2] over a timescale of billions of years.
[1] http://www.physicsclassroom.com/class/circles/Lesson-4/Keple...
[2] Unstable in the sense that Earth's orbit may become eccentric enough to smash into another planet, get ejected from the solar system, or dive into the sun.
No. Ignoring perturbations from other planets, planetary orbits are stable ellipses with the sun at one focus.
http://en.m.wikipedia.org/wiki/Kepler's_laws_of_planetary_mo...