I can help you with your first question (1).
Could you say what you mean when you stated that you couldn't follow the example case? Did you refer to the
GIS Pre-processing tools documentation, Section 5.4.2? If you follow the format described in the attached image, using latitude/longitude coordinates in decimal degrees on the WGS84 datum, then you should get forecast points in the resulting frxst_pts grid in the Fulldom_hires netcdf file. This process can take some iteration, as you will need to place your gauge locations on the correct flowline according to the CHANNELGRID variable in the resulting Fulldom_hires.nc file. You may need to adjust the coordinates in your CSV file in order to move the points closer to the channel network according to your routing grid, since the tool uses a snapping tolerance of 3 grid cells to move forecast points onto the channel cell with the highest flow accumulation within that distance threshold. The automation in this process can be error prone, so always check that your forecast points are placed in the correct hydrologic location in your model domain.