1. Yes

2. I set mine to move as far as they would go.

3. Start with on the spar or a little forward of that. Adjust to your tastes. The model seems to come out generally nose heavy, so you might consider mounting the servos in the tail. I had to place the battery fairly far aft and it's still a tad nose heavy.

4. a. Cover it however you like. Monokote/Ultracote is fairly standard response, but the originals probably used silk and dope.

4. b. Virtually any engine will work - from a .40 to a .90 four stroke. Depends on how you like to fly. For a Sunday flyer though, a .46 AX powers mine just fine.

There are a few good build threads in this forum. Here's mine:
http://www.rcuniverse.com/forum/m_8424891/tm.htm

5. Also, think about the dihedral you build it with. A flat wing is good for sport aerobatic flying. Even a little dihedral will make it very resistant to a knife edge though.