Quote: "When a player elects to "Host" the game, do they effectively become the server?"
Yes, the host starts an instance of the server, and an instance of the client that then connects to themselves. So they are the first client with ID 1.
Quote: "4 bytes for msg 5, 4 bytes for from client, 4 bytes carrying hex 0C (FormFeed), then the 4 bytes for msg length"
I can't see any reason why that 0C value would be there, as far as I can tell that would be the msg length value.
Quote: "Can you point me to any information about shared variables?"
There should be some description of it in the documentation under SetNetworkLocalInteger and GetNetworkClientInteger. Essentially each client can broadcast a list of local variables to all clients on the network that can then read them as if they were a local value.