1)
http://msdn.microsoft.com/en-us/library/ff678491.aspx[
^]
prob not in the silverlightApp.Web project though in its own would be nicer.
2) Yes, WCF is great way to connect. (remember silverlight is always async)
3) look at MSDeploy it is easy, but if all else fails remember you can just FTP the folder across and your away laughing!