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1) If you purchase books from Barnes & Noble, it will download them via WiFi if you've got it, then the 3G SIM card that comes with your nook, assuming that you're in the 3G range. If you don't have either, then I think it only supports sideloading via USB. If you softroot your nook, and want to download books via the Trook application, you need WiFi, or a replacement 3G SIM.
2) The nook can only read eReader, ePub, PDF and text files. My impression is that LIT file format is a dying format. Your best bet for reading LIT files on the nook is to use Calibre to convert them to ePub format. In general, if you have DRM-free files that are not one of the formats the nook supports, you can use Calibre to convert them to ePub.
3) The nook is an E-Ink screen, and requires an external light source. Just about any external book light would work with it.
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