Hi Gautam,
Sorry we haven't responded by now, but we've been busy today. We can only guarantee quick response times with a support contract, especially as those take more of our time these days. We can't always guarantee that you'll receive a response the same day or even within a few days of posting here on the community support list. Just depends on our availability. If you're interested in hearing what comes with support, I can send you some details and get a quote to you.
1) You can leave the CHARSET alone, but utf8 is preferred to latin1. You'll need to change them through an ALTER TABLE, if you want to change them, so that text can be re-encoded. Don't edit it in a database dump.
2) Without knowing the context of this error, I can't say for sure, but:
3) SECRET_KEY must be the same, or you will definitely have issues like #2. All repository credentials, tokens, etc. are encrypted based on your SECRET_KEY, and if it changes, things will break. Sometimes a different SECRET_KEY will still sort of decrypt the content, but to garbage (rather than the expected Unicode content).
Christian