Allows you to integrate Flickr photos into your site. It supports user, set, favorite, group and community photostreams.
No, it's a limitation of using the RSS feed (it only contains the most recent photos). Other people have produced API based version of the plugin, try searching for them.
No. The plugin uses built-in WordPress functions to update the feed.
The feed will only pull in photos that have both tags, not one or the other.
You've probably specified the full path wrong. Double check with your host to make sure you've got it right. If you're still having troubles, check the forum.
Sometimes it can take a little while to kick in, have patience. Flickr may possibly have been down. Also, make sure it works without the cache first.
Yes and no, videos will be displayed as a thumbnail image. You'll need to click through to flickr to play it though.