You dont have to use a plastic cup but planting in small containers and transplanting later is the best way to do it.

Ive never heard of lights off for 2 weeks. The most ive heard is 3-5 days and from what ive read it really helps. Im getting close to finish on my current grow and im going to try it.

The smell... First of all do you have exhaust or a carbon filter? You need exhaust for that light otherwise it will get too hot. If you dont have some type of odor control like a filter or ozone then you will probably be able to smell those plants throughout your home.