Impala, to answer the questions in order:
1. The copy of your C&R is the FFL copy they need. It is an FFL, Class 03, as opposed to the typical (01) dealers FFL.
2. Yes, you do. The CLEO does nothing with it, so it's (IMO), a waste of a stamp, but must be done.
3. The only special procedure is to log it out of your bound book, which requires the buyer's information.
4. The bound book is where you have to record all C&R eligible purchases and dispositions; it is a book of the C&R weapons you have acquired/sold since you obtained your license.
Hope that helps