Answer to Question 2: For powering your Lilliput, it's recommended that you use the M2 to power the screen. I cannot remember exactly what I did, but you use one of the 4-pin connectors to power the screen. This 4-pin connector is already connected to to the provided ATX connector that comes with the M2. I'm blanking on what I did with my Gain touchscreen, but I'm positive there's a sticky on it under the FAQ's section. Basically you're cutting both the 4-pin connector and the cig light adapter. You connect the positive wires and the ground wires together. But check the FAQ if you go this way.
Your other option is to power the Lilliput with the a cig light adapter. But people recommend the M2-ATX route because the power source is "clean."