1. you basically let your eyes blur and see the whole room and the book is like in the middle of your optical view. with the book you're just flipping the pages by the second while you chant. it's not like you 'stare at the page for a minute kind of thing. its much more relaxing than that.
number two should tell you how it's done.
2. Check website... I can't believe Ranaan didn't mention it. http://www.learningstrategies.com/PhotoReading/Intro3.html

3. some can't and some can, but they all can photoread at some level. I can't see the blip page but i can do it.

4. it's up to you. I find it easier to keep the book still and just turn the pages as well as keep my head still and my eyes still too. if you're experienced, according to a lot of people, you could snap out of focus of the photoread and then go back into it without breaking the pace or the 'alert but relaxed' state. I haven't reach to that ability yet.

anyway its mostly what ranaan says.

Miss eggy