WITH INIT should have no effect on the database. It does remove any backups in that file, but that's separate from your database.

I use WITH INIT for clarity, but always...

I'm not quite clear how you're using this as an input parameter. Perhaps an example?

I would avoid dynamic SQL since it is harder to tune or make adjustments if that's...

As long as the pathing is the same, you can move master over to the new server without issues (same pathing for all databases). Be sure you rename the new...

No idea on the disk types to choose, go with the fastest throughput you can.

Do not use R5, except maybe for backups. http://www.baarf.com has good reasons to stick with...

I tend to agree with John that you want to figure out what the CPU load is. If I had consistently 50-60%, I have a busy server and I'm keeping...

As Tom mentioned, if you mess with the log (NO_TRUNCATE, NO_LOG, etc), always run a a backup.

You should always determine what caused growth and then decide if it's regular or...

sqlwb is Management Studio.

As Adam mentioned, unless this happens often, I wouldn't worry.

What's in the event log for the VM? I have SQL Server on multiple VMs with no issues.

Any application that allows the user to type in data is vulnerable. Only if the application allowed users to click buttons or make pre-set selections would this not be a...

It's Intellisense and it's coming in SQL Server 2008 to the native tools.

Red Gate software has a product called SQL Prompt that does this (I work for Red Gate).

This could help, especially if you granted read only access to the global data. It might help with the load.

If you are joining this data across databases, however, then you...

You've got a lot of info there; too much to really go through in details, but can you answer a few questions.

What is the amount of memory in the new...

I would say no and no

What does kick you out mean? The application closes? It must be corrupted then.

Are you modifying user stored procedures?

http://www.sql-server-performance.com/articles/per/awe_memory_sql2000_p1.aspx