As long as you are not stupid about it you should have no problems. By stupid I mean doing a 200k run on a two day old site with no existing backlinks. The niche does not matter what matters is the site itself ( age and number of existing links) and what kind of run you do.
Not really the case. Again it depends on if you are being stupid or not. What kinds of links and how many are much more important than the tool being used. Now if you are paying somebody else to do runs for you then you need to be careful and make sure you know exactly what you are getting. It may well be worthwhile to test the person on a site you do not care about first.
The software hasn't really been around long enough to see if there will be penalties yet anyway - I've had no probs so far (on a relatively new site) but agree with volund, don't risk it on an established money-maker if you can't afford to lose it.
you can also use Xrumer to post to website contacts forum (w/ mod), then harvest a list of sites and blast with webmaster with you l33t webmaster offers. Xrumer is not just a backlinking tool
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