4) I see all my linetypes as continous on screen. whats wrong?
Adjust linetypescale (default value is 1.000). By hitting Ctrl+1
and seeing the properties docker popping up.
I have had this problem before, and note that 3D polylines will not generate a linetype, and also in the properties docker there is a drop down for linetype generation. When it says no, your linetypes are not shown. When it says yes, they are.