A1: You can only report your rental income on Schedule E (Form 1040), Supplemental Income and Loss if you're not a real estate professional.
A2: Doing business as a Sole Proprietor, you need to file Schedule C, Self-employed individuals.
A4: No, you cannot claim the rental expense without any rental income for 2010. If you have rental income in 2011, then you can recover 2010 rental expense as a part of improvements by depreciating the expense over 27.5 years.