For 1, 2 and 5 see below. (6 and 7 has been answered by codedfire)

1) I agree with what Si says. check this http://support.microsoft.com/kb/932170/en-us out for the upgrade. There is a link under RESOLUTION in the above link which will help you out.

2) If you are running the Power saver plan, Windows sometimes turns off transparency automatically. If you don't want this to happen, you can switch to the Balanced power plan.

To change an existing power plan
a) Open Power Options by clicking the Start button , clicking Control Panel, clicking System and Maintenance, and then clicking Power Options.
b) On the Select a power plan page, click Balanced.

5)
a)Click the arrow below the Library tab, and then click Add to Library
b)In the Add to Library dialog box, Click on Advanced options
c) Remove the USB link and click on ok

Let me see if I get answers for the rest...