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Good analogy!
The universe can be infinite because space/time is curved. Picture a tiny bug walking on the inner surface of a basketball. It can go forever and never reach the end - as far as the bug is concerned, his basketball universe is infinite.
And the universe isn't necessarilly all that exists. Many scientists hypothesize that there are many universes, and we're just in one of them. Again with the bug, all he could see was his basketball - he'd never know that his basketball was on a rack next to 20 others.
You might want to read "Coming of Age in the Milky Way" by Tim Ferris. It explains a lot of things in ways normal people like me can understand.
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