1. Setting a grid size based on D*/dx is just a rule of thumb for simulations where the quantities of interest are related to the fire plume (plume temperature, layer growth, etc.). It is up to you to determine if this grid size is appropriate for your specific simulation.
2. Assuming that you intend Qc to be the convective heat release rate then yes, Qc = Q * (1- Xr)
3. It is not clear what you are asking. You should be setting inputs such as boundary conditions, material properties, and fuel species + reaction definitions to represent as best you can the specific scenario you are modeling.