Streaming Rep 101 questions

Hi:

I'm going to be experimenting with streaming replication using v9.0.1. Here are a few questions I have at the onset...
1) Is it possible to replicate one database out of many that exist in the DB instance? Or do you have to replicate them all?
2) Is replication transaction based? That is to say, does the act of replicating a transaction wait until the commit on the server side?
3) I will be replicating to a DB server 2 timezones away initially, but perhaps from the US-> India at some future point. Is the PG replication solution meant to do something like this (given sufficient bandwidth of course)?
4) The slave DB instance will also be v9.0.1 on linux, but it wil be a virtual machine. Do you see any problem with that?
5) Is there a step-by-step "how to" document for this?

Thanks in Advance !