Answer 1: No
Answer 2: Please see attached files, the wires should be pointing inward. Please also check the pinouts. Colors may vary from the attached image.
Answer 3: Dips have no play in MPX to DMX conversion.
Answer 4: Termination should only be used if you are having noise problems.
Did you install DMX chip with the NOTCH in the chip lined up with the NOTCH in the socket?