01. Yes of course, you need to block non-western countries for better revenue and less resource use though.
02. Glype script is the one to use, it's supported by the developers and has a wide range of themes and add-ons. Available from http://www.glype.com/download.php
03. Phproxy hasn't been updated for 4 years, I wouldn't bother, use glype and it has a free MySpace plugin included.
Edit: You won't make your fortune with proxies, each one will only earn a few bucks a month but have a small network of them and it'll build up over time. Don't think of it as your retirement fund, think of it as beer money