articlehost ,
This is a really good feature I'm also happy ViArt added,
If I have given wrong info pls correct me, but
1) I believe its only in the shopping cart once logged in and nowhere else
2) I believe its via the "personal" checkout option
3) Yes e.g
http://www.domain.com/admin/admin_users.php, click in the points tab to manually add.
Are you using points in global site settings or just in the individual product settings?