1. This is because you need to publish things to the module positions when in module mode. Here is tutorial on this:http://www.shape5.com/demo/maxed_mag/index.php?option=com_content&view=article&id=226&Itemid=323
2. Need to see live
3. No this is not the reason why
4. Shouldnt matter what position, just where ever you would like it
5. Please post in the forum of the template you are using for this one.
You can just click on my name and then click private message and you can send the website address there. Thanks!