1- Right
2- The potentiometer goes in place of R2 and R3 in the simulation schematic. If you look down the shaft the terminal on the left goes to ground, the center terminal goes to Pin 8 and the right one goes to C1.
3- They just show a connection. For example +12 goes from the battery to pin 6.
4- V2 ac is just for simulation. This is your input from your IPod or what ever you are amplifying.
5- Those are pin numbers on the ic = pin 1, 8, and 7.
Good luck.