1) Move the yellow and red squares to the right. The image is located on the lower right corner of area shown in text.exe.
2) yep, but subtype should differ from existing objects.
3) Towns - that's where new wog objects are.
4) nothing
5) nothing
6) Open the real ZEOBJTS.txt and choose the objects after which you want to have yours. After setting all fields press Ctrl+C or Edit -> Add File After Cursor Position
However, I suggest you to add it to the end and use ModHomm
7) It won't work this way, because it would be impossible to install multiple objects - ZEOBJTS.txt of first installed object would be overwritten by the second. You can use ModHomm to make an .obj file. It can then be installed with SimpleLod.
8) choose all Types of Terrain

BTW, what's the strange shadow mess on your picture? You shouldn't use "Apply and Save" on Shadows tab.