Sorry I haven't used this plugin myself:-( The author is Julien Roche.
Regrading question 1: I would guess that if you start with an empty
div and you replace it with your form panel, the one containing the
editor. Did you try doing that?
Regrading question 3: we could try to compose some examples and
publish them with the demo application. I don't think we have any
examples right now: at least not on wiquery-plugins project.