Hello and welcome to the forum! I personally don't have the answers to numbers 1 and 2, however. . . number 3. Grey smoke isn't necessarily indicative of coolant seals going out, though it could be. Usually its white smoke (i speak from experience
) that starts flowing out of the exhaust, that's your main coolant seal failure sign right there.
I've never seen a TR7 with a rotary in it before, sounds awesome! Others will chime in once the day begins and will most likely have the rest of the answers you are looking for.