1. Very smart to use your reseller account to host many sites at once. Make sure the web sites are not hungry for bandwidth though, otherwise you would end up with a bill for extra usage bill. after 5 GB of limit..

2. The entire thing is hosted by the same company. You will just have a reseller management control panel where you would be able to setup your sites in, allocate resources limits (or leaving it blank). Then you just have a control panel for every site you list/register this way where you can manage them.

3. Not clear what you mean, but you end up uploading stuff from your compauter to the host's server where you have an account so that the files are active and if you point/publish them, they are available for other Internet users. You just have to upload only reletive to your web site files, like HTML files, graphics, maybe some documents if any.

4. 5 GB for $5 is a reasonable deal, but make sure the support and tech performance of the company you get hosting from is outstanding. The fact that you're going to host more than one web site and one of them is going to be for your local police department, then you really wouldn't want the site be vulnerable due to poor host security or if the site gets lots of downtime.

Be careful. Choosing the right host NOW can benefit you in the long run.

Hope this helps,