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[jon182]

Hi

1. No, You can burn it onto a DVD, but its much easier to mod from the hdd because you can FTP the files over instead of burning the whole game onto a DVD every time

2. No. You have to do it yourself but its fairly easy

4. Like i said n number 1. You can burn it onto a DVD,

When i started modding GTA I had the stock Hdd and i could just about  fit it on (I cant remember the exact size of the game)

At some point you will probably end up putting a bigger hard drive in anyway, so i would say do it now and it will make modding GTA easier  

Hope that helps