Parses posts for defined glossary terms and adds links to the static glossary page containing the definition and a tooltip with the definition.
No. It can be called anything. In fact you don't even need to have a main glossary page.
No. Just leave that page blank. The plugin creates the unordered list of terms automatically.
Simply add a term under the 'Glossary' section in the adminstration interface. Title it the glossary term (ex. "WordPress") and put the term's definition into the body (ex. "A neato Blogging Platform").
Just add it or change it. The links for your glossary terms are added to your page and post content on the fly so your glossary links will always be up to date.