As to question 3. If by public you mean a non-profit/non-advertisement "public" station then that is non-commercial I guess.
But if it's a large station with a good budget, a single commercial license might be a nice gesture to Ian. (BASS is a damn great library after all

For an example of a non-commercial/non-profit (heck we're bleeding money out of our own pockets, despite being sponsored) we have no advertisements (except funny "fake" ones) although we tend to promote the game we broadcast from "within" and that company, we are under no contract or obligation to do so. Heck we sometimes diss certain silly things they do.
http://gridstream.org/ click on Launch or Get Player, as you can see the player can be downloaded there and there only. (stupid RIAA and Loudcity limitations, but we have to do it, and fork out loads of cash for royalties, did I hint we really dislike the RIAA for blackmailing free radio stations?

There is also a option to use other players (.pls url) like Winamp or even Un4seen's own XMPlay (with the AAC plugin) and so on.
The player at being started shows a splash window where we display the BASS logo, as well as metion it in the manual. (the least we can do) BASS has no logo requirements for the "free" license, rather surprising really. So my advice is promote the hell out of BASS when you use it by using a splash window or similar.
I'm also working on two other projects using BASS, one will be a internal tool that could become a shareware tool (pay if you like it and want to support it) and as soon as €100 has accumulated I'll be getting the shareware license ASAP. The second project will most likely start as shareware too but might go "commercial" not long after, and I'm hoping to go straight for the unlimited commercial, but depending on the money coming in on that one I may only be able to afford the single product license. I'll probably be asking Ian for confirmation when that time comes with details of it as the end users may or may not be commercial entities using that 2nd project software for commercial profit, (although indirectly) so it could end up requiring a double license for all I know. (for each commercial user)
BASS licenses aren't expensive, heck a certain popular competing product is more than twice as costly, and depending on the license, multiple times more costly even.
Important! If you plan to support mp3 (and it's for commercial purposes) you may want to use the non mp3 version of BASS, and thus the ACM mp3 codec installed in the system will be used instead. If not you may need to handle the issue with mp3 licensing. (a bit uncertain on the mp3 license on this, for encoding and commercial use however, you must license mp3, so check up on playback as well) Same with aac/aacplus etc.
Ogg Vorbis is free to use, even for commercial and BASS supports Ogg obviously.
Note! If the station if simulcasting what goes "on the airwaves" on the internet as well, make sure you guys already have a internet webcasting license, the RIAA requires separate royalties for that. (the DMCA gives me a headache)
I'll shut up now, I've probably blabbered about more than you asked for. Heh! I tend to do that!
Oh and if something I said above is wrong or misunderstood feel free to correct me. I may not always be correct.
