1. It's up one level of your "cstrike" folder (e.g: C:\SIERRA\Half-Life or C:\Program Files\Steam\SteamApps\*EMAIL*\counter-strike)
2. I haven't tested it myself but I heard it works with the current version of Steam from some people, you have to test it yourself
3. Install it to the correct directory (mentioned above), then go to your cstrike folder and set the liblist.gam to Read-Only mode if you are using Steam.
4. It's just up to you, it doesn't affect IvPBot if you keep it on your machine