Well let's see,
1. If I'm gonna cut elm saplings or branches, I try to either cut them in the spring or early fall so that the bark peels right off. I don't cut 'em in between those time frames because the growth ring won't be as strong. So yep, I peel em before I split em.
2. You should be able to work around that knot if you are going with a stiff handle. A bendy handle may chrystal at the knot since it runs straight in to the side.
3. You didn't do anything wrong. That is just the nature of elm. I've had twist 180 degrees on me before.
4. I don't usually measure at that point. I just draw knife it down to where I think it ought to be. (I've made some nice kid bow staves that way)
5. It is not only effective to tie em down, but highly recommended.
6. unless your trying for two staves, just drawknife the belly off the limbs and leave the handle full. However, be sure to seal the full round part and about six inches down each limb from the handle area or it will check on ya. BTW if you thought splitting it was fun, wait til you get after it with the draw knife!
Hope this helps, Josh