1. I assume your problem is the clipping range. Try the Set Camera Range command. About the performance loss, with a huge skybox/sphere a performance hit is inevitable. The best you can do is, instead of using the cube or sphere primitives supplied by DB, you can make a simple model of a box or a sphere with fewer polys using a 3rd party modelling program. External objects are faster than DB primitives for some reason.
2. Depends on the size of your game world.
3. DBC or DBPro? I can't judge pro because I don't have it, but it hits DBC pretty badly. Best thing to do in DBC is use a model instead of a matrix, and use some maths for calculating ground height when you need it.
4. Matrix level of detail style? Nope, never seen that in DBC, but Pro is gonna get updated soon with some upgraded matrix commands and stuff, so leave that question for DBP users. But it's never gonna happen in DBC.
5. Some people (such as kenmo in the LLRGT forum) are working on that. It is possible, if you know how to convert between RGB and HSL properly (there are examples on the web, but the RGB to HSL conversion isn't correct).
6. DPI is only for printing. DPI won't affect the clarity of an image in the computer, but it's physical resolution does. Meaning, a 300 dpi image will still look blocky in the computer if the physical resolution is only 64*64, but even if you save it as a 72 dpi image, but the physical resolution is 512*512, it will look pretty good.
7. Check the BlueGUI by RobK in the Program announcements board (I think). It should help you with the Windows interface stuff (buttons, drop-down list box, windows, etc.).
Whew. Hope that helped somehow.