As a reader, I don't really have a preference as long as it suits the story. As a writer, I very much prefer third-person. I have written in first when the story called for it, but I generally find it a lot easier and more natural to write in third. First person feels kind of limiting and constrictive to me. Everything is going to be tainted by that one person's perspective, and you're not allowed to show things that that person wouldn't see or know. In some cases that works, but I really like to explore things from every different angle in a very open way that isn't necessarily going to be veiled by that single character's perceptions. I've heard lots of people say that first-person gets them more emotionally connected to the character and all that, which I understand, but I've personally never had a problem connecting to my characters in third-person. I actually think that in first-person, its harder just because I'm honesly not very good at it so it just comes out wrong, at least until its been revised several times.
BQ2: The same as in first. The only difference is that a non-character narrator is telling the story, and sometimes that actually works better. I've had characters who are the type who wouldn't even know how to express their emotions, or would simply be unwilling to do so, and in those cases first-person really wouldn't have worked. It would have felt forced. You use the same tactics to show the emotion in third person as you do in first, but its going to come off just slightly different because that emotion isn't going to be solely reliant on the narrating character's perceptions
BQ3: No. Its annoying to read and I think it would be almost more annoying to write. Having "you" as a character when I don't even really know who "you" are would just bother the heck out of me.
BQ4: Some curry and peanut butter M&Ms.
BQ5: Yeah. I've got 3 dogs. Well, one is "mine" (the malamute in my profile picture) and one is my husband's (a red doberman). The other one is my mother-in-law's, a miniature pinscher who annoys the hell out of me sometimes. We 'temporarily' adopted her because they were forced to move and couldn't keep her. Now its not looking so temporary and we're thinking of rehoming her to a good family friend. She gets picked on by the mal and the dobie a lot since she's so small and they're both younger and don't understand that she doesn't want to play dumb puppy games. :P She'd probably be happier in a more small-dog-friendly environment.