Jamas,
Here's my 2 cents to your questions:
1. Two bottles got the job done for me with a little left over and my cladding was in BAD shape. You actually need to "cut" the dye when using the sprayer with Mineral Spirits, so the 2nd coat goes a lot further than the 1st that is applied by the terry cloth.
2. I used those round terry cloth wax pads that you can find at Wal_mart or any automotive store. I applied liberally for my 1st coat covering small areas at a time before re-applying the dye to the pad.
3. I let mine dry overnight, but I'm sure you can do it sooner.... There is timing in the included instructions with the dye.
Hope this helps...
CP