Hi Eric,
1) We highly recommend using MOD controlled vocabulary (http://
www.ebi.ac.uk/ontology-lookup/browse.do?ontName=MOD) for the term.
Specifically we expect data providers to use "protein modification
categorized by amino acid modified" branch.
2) It is not a good practice in general to encode location info on the
term. This should go to the feature location.
3) Unless it is a "generic" feature the amino acid is already
specified since you know the location AND the sequence( via the
associated ProteinReference). So this info is already encoded.
Does that answer your question? Are there special cases where this
would not be sufficient? If you can provide some examples I am happy
to discuss further.
Best,
ED