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1: No, you don't if you root first. Making the boot image on the MicroSD card will format the card and erase anything on it. But if you root first, you can then use the same card for everything else. If you think you might have to reroot, (so far, I've been rooted for a month and have not needed to redo anything) it might be best to have two cards. I used a cheapo 4G card, and even with dozens of books, thousands of music files, a couple of complete system backups, and miscellaneous programs and data, there's still almost 2 gigs left on the card. I think the music files take up the most room.
2: I do better with printed step by step instructions, I have a hard time following along on youtube.
3: I would autoroot. It's not only easier, but you get NookColor Tools, YouTube, and Gmail installed at the same time.
Az
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