1.) Not sure, never used it but I would assume so.
2.) Yes. in the main ini change the show resolutions (x and y) to the resolution you want.
3.) I use a M10k, and line-in and no problems.
have you installed your video drivers? Even though the video may work, the video drivers (via 4-in1 and via C3 PowerSave video drivers) should be installed to make it efficient.
Also what skin are you using? Does it have flash? Do you have flash 8 or 9?