1) Yes, it shoudl have a growing tip plus 2-3 lower nodes. You will strip the lowest node.
2) 24h, weak, blue. One shop light about 2-3 feet from the plants is fine.\
3) No holes in the tray or dome at first. Do not mist the plants. Only mist the inside of the dome, and only when they look like they are about to wilt. NEVER water your plugs unless they are actually getting dry.
4) RapidRooter bark plugs are easiest for a noob.

Read the cloning link in my sig. All your ansewers are in there. Also there's info in the grow guide link.