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iWriter is not a good place to request/buy articles. Some of their writers don't have any idea about the topic at all. They are spinning articles from ezine and other article submission sites.

I don't think they can sue you.. you're not covered by US laws. In the meantime, you can try ignoring them and see if they stop bugging you. :D

How about google trends? You might want to check on that.. with this tool, you can determine which keywords are most popular.

I wonder if I can apply for an AdSense account if I have no other sites other than blogspot/blogger blogs? just to clarify -- what is the chance that my application will be approved?

word of mouth is also one For instance, if you are a service provider, if you provide the best service, people will start recommending you to their friends and the friends of their friends, and I am sure you know how things can go viral these days.. :D

I think, even if it will not improve your ranking.. at least it will direct some traffic to your site which is good! and yes title and description are important.

I believe there are so many available free themes online.. I bumped into one a few months ago while building my first site.. I forgot the link.. it was a pretty good site. I'll see if I can find it again. more google search and I am sure, you'll find a good one!

I'm just wondering if blogspot blogs are already optimized?

it will take some time if you want learn the INs and OUTs of an effective SEO. I would suggest you hire an expert...