Hi Jag,
The manual does leave something to be desired in the way of written instructions...we're working on that.
To answer your questions:
1) There is no better servo saver, it really depends on the track you race on. I started out with the "B" block with the steering rods in the rear position. Putting them in the forward hole should give you a little bit better low-speed, tight corner steering.
2) All the cars come with only one rear "big" pulley as far as I know. There are two side pulley options, though. 25T and 26T. 26T is a good place to start, as this won't overdrive the front tires. 25T is for really high bite tracks.
3) The spring has to be compressed a bit to get the collar on. There should only be a thread or two showing when it's on there...it's pretty tight like that without destroying the servo if you hit something.
4) I had to file the corner of the servo saver about 1-2mm on my car to keep it from hitting the belt, even when the pulley was moved over as far as it could go.
5) The rear of the car is more straightforward. The two-speed settings are probably a bit ambiguous, just turn the shiftpoint out about 3 turns from fully in. The steel two-speed shaft should rock back and forth freely without slop within the shoes, don't overtighten the 3mm setscrews/barrels that hold it in place. The brake pads will be tight at first, they'll either break in with the first run, or you can sand them down to make things nice and free right off the line. I'll get some clutch settings soon, we ran the car this weekend and the clutch is awesome right out of the box (with the right settings of course). Set up the rear body mount on the innermost hole, the lowest setting.
Hope that answers your questions. We'll have more setup information soon.