Hi,
As far as I understand it, the reply to 1) is that with a free account the maximum number of members in a group is 100 (certainly not a 100 per day kind of thing). Note that this is NOT the case in Google Apps for Business or Google Apps for Education accounts.
In terms of 2), I believe the number of members is unlimited for these accounts. Also, you can add an unlimited number of members to a group using the provisioning api. However, one would not be able to do this through the user interface, which does have the limit (this is what the first url you refer to explains).
3) The second url you mention does explain that the API will throw an error (a ‘quota error’). Please read the first few paragraphs carefully.
Disclaimer: I am not a Google employee; just a user of the API, so the above is based on my understanding of the documentation.
-Patricia
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