[dnanian]

1. In our test, we can boot from it. I suggest repairing the result with Disk Utility and using the startup disk preference pane to select it for boot.

2. Whatever the source has (likely normal).

3. Your choice. I'd use the same.

4. Same as the source.

5. I have no way of answering that. It's *ALWAYS* a terrible idea, though.

6. The drive is always encrypted.

7. I think an encrypted backup is much less 'recoverable' should you have drive, directory or other issues, since the data isn't easily scanned. So, personally, I avoid encryption.