Protonation of Guanidine Why is the $\ce{sp^2}$ hybridized nitrogen atom in guanidine the most basic? 



I know that as a general guideline, $\ce{sp^3}$ hybridized atoms are more basic than $\ce{sp^2}$. Bases are electron pair donors; having the electrons further away from the nucleus makes donation easier. 

On the other hand, protonating the double bonded nitrogen enables effective resonance stabilization. The positive charge can be delocalized across the molecule. Protonating the other nitrogens does not allow for the same degree of resonance stabilization. 

And finally, in one textbook, I found mention of a +M effect - what is the +M effect? And while we're on that, what's +/- I? I understand that I stands for induction, but what's +I? What's positive induction? 

One more note, since the double bonded nitrogen is $\ce{sp^2}$ hybridized, does that mean it has a greater negative charge density than the other nitrogens by nature of having greater s-character? Could this + charge density be giving the double bonded nitrogen more nucleophilic character?
Your misconception is directly at the beginning of your question and turns up multiple times. There are no $\mathbf{sp^3}$ nitrogens in guanidine.

Guanidine is isolobal to urea, where the carbonyl oxygen has been replaced by an imine $\ce{NH}$. However, in principle it is still the same flat, resonance-stabilised molecule. The main difference is that there is no ‘preferred’ site for the double bond — it could point towards any of the three nitrogens in theory; you could say the diamide resonance is enhanced.

This is also why the $\ce{-NH2}$ nitrogens are not basic. Their lone pair is not sitting in an orbital all alone waiting for a proton. It is actively resonating with the &#x3c0; system of the other two. The only available lone pair guanidine has is that of the $\ce{=NH}$ nitrogen sitting in an $\mathrm{sp^2}$ hybrid orbital. Thus, a second protonation requires somewhat superacidic media.