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1. Is there firmware available that will read DRM Mobipocket?
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Opus will be able to, in the futur, but it won't read both mobi and ePub at the same time.
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2. Is there firmware available that will read any Mobipocket at all or will I have to convert my entire library?
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See point one

Having both drm is no go. Pocketbook have a firmware that handele both format without drm.
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3. What is your experience of how well Mobipocket books are displayed in each different firmware and how pleasant they are to read?
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Nice, but ePub formating option are better.
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4. Same question for ePub just in case I have to convert.
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ePub can get better formating. I would definitifly go ePub, and stop bother with mobi.
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7. Can the display be changed into landscape format? Does this work for all formats?
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Yes for ePub on the opus, not sure about mobi.
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8. Is there any difference in how books or the library view are displayed depending on whether books are in the memory or on a memory card?
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Nope for the opus.