FVF_XYZRHW is for a 4-coordinate transformed vertex, i.e. transformed to view space. The forth coordinate is approximately the inverse of the depth value. You would use this format if you have vertices that are already transformed and ready to be lit and rendered.
The B1-B5 (beta) flags indicate how many weight fields and optionally a packed matrix index field (add in D3DFVF_LASTBETA_UBYTE4) are to be present in the vertex. For example, if you have a packed matrix index field (1-4 matrix indices, one per byte), you use FVF_XYZB1 | D3DFVF_LASTBETA_UBYTE4. If you have one wieght also plus the matrix indices, you use FVF_XYZB2 | D3DFVF_LASTBETA_UBYTE4.
Yes, the multiple texture coordinate sets lets you use multiple textures and lets the vertex use a different set of mapping coordinates. I don't think any of the DBPro file formats support this, though. DirectX does not.
John Thompson
http://www.jtgame.com/jtedit