Fluid Antenna System (FAS) unlocks unprecedented flexibility in wireless channel optimization through spatial reconfigurability. However, its practical deployment is hindered by the coupled challenges posed by high-dimensional channel estimation and real-time position optimization. This paper bridges wireless propagation physics with compressed sensing theory to address these challenges through three aspects. First, we establish a group-sparse recovery framework for space-frequency characteristics (SFC) in FAS, formally characterizing leakage-induced sparsity degradation from limited aperture and bandwidth as a structured group-sparsity problem. By deriving dictionary-adapted group restricted isometry property (D-GRIP), we prove tight recovery bounds for a convex $\ell_1/\ell_2$-mixed norm optimization formulation that preserves leakage-aware sparsity patterns. Second, we develop a Descending Correlation Group Orthogonal Matching Pursuit (DC-GOMP) algorithm that systematically relaxes leakage constraints to reduce subcoherence. This approach enables robust FSC recovery with accelerated convergence and superior performance compared to conventional compressive sensing methods like OMP or GOMP. Third, we formulate spatial equalization (SE) as a mixed-integer linear programming (MILP) problem, ensuring optimality through the branch-and-bound method. To achieve real-time implementability while maintaining near-optimal performance, we complement this with a greedy algorithm. Simulation results demonstrate the proposed channel estimation algorithm effectively resolves energy misallocation and enables recovery of weak details, achieving superior recovery accuracy and convergence rate. The SE framework suppresses deep fading phenomena and reduces hardware deployment overhead while maintaining equivalent link reliability.