I’ll wing some answers!
1. Correct, you can have words of power equal to spaces in the sheet.
2. words have a minimum of 4 letters at any point.
3. It is 1d6, it’s meant as a last ditch effort sort of, you’re risking the last use of a module so the odds are more in your favor than normal
4. You’re right, there’s some dissonance between conduction as a positive connotation and damage as negative since were using a clock here. It is meant to start at 8 and deplete.
5. There shouldn’t ever be a point where a player doesn’t have any words in their collection, the gm should be passing out new words to players as or more often than they’re being used for any overcoming of obstacles or victories in battle, managing that is just sort of a new thing to be aware of during play for a gamemaster