Q6: Not sure if this will answer your question, but this is what happens in gMax/3DSMax:
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Select an object, and then select the face sub-object level. Scroll down the right-side nav panel until you see Smoothing Groups.
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Select your face(s), in this case I selected all. The numbered buttons should change to reflect what smoothing group(s) the selected face(s) are associated with. Because I did not want any sharp edges on this section of the tower, all faces are part of the same smoothing group.
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Because the crenellations should have sharp edges, you can see all the selected faces are part of four different smoothing groups.
If you wanted to pick faces by the smoothing group associated with them, you would use the Select By SG button.
You can clear associated smoothing groups, by selecting the face(s) you wish to clear and then press the Clear All button.
Auto Smooth is used along with the angle next to it, to perform automated smoothing. 45 degrees is the default that has been set since nwMax released. For the most part, it does a pretty good job. If this doesn't give you the desired effect, your mesh should probably be split into more than a single mesh.
You can also manually assign smoothing groups by selecting faces and selecting one of the smoothing group buttons.
MDA