1) WordPress MultiUser (WPMU) was the term used before WP3. WPMS is for version 3 and newer.
2) Subsite posts appearing on the main site is built into BuddyPress. You will need to install BP to your multisite setup for this to work.
3) There are several plugins that achieve this either through a) a single user database shared across all sites, or b) duplication of users with differing user permissions per site.
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