Q2: How much touch is actually ok?

How much touch is actually ok? 
Well, I would like to start by changing the question a bit. I grew up always asking God, "How far is too far?" Suddenly, my junior year of college, I started to ask the Lord, "What is most glorifying to you?" So, in the context of a relationship, we should also ask- what is most glorifying to God? We should also view relationships in general in that way- especially marriage! Marriage is intended to glorify God primarily; the end goal is not the simply make us happy- God is most glorified in us when we are most satisfied in HIM, not a husband. So, how can we glorify God in our physical relationship? Well, obviously, sex outside of marriage is bad. GREAT in marriage (from what I hear), but sin outside of it. That is the firm line in the sand. And sex, for our purposes, can be defined as any contact with the nether-regions. I would say that contact with a "bathing suit area" is not advocated either. However, outside of that, Scripture is pretty quiet. It doesn't have rules for hand holding, cuddling, making out, etc. But, one verse has greatly impacted my view: Proverbs 31:12, "She does good to her husband all the days of her life." THAT INCLUDES RIGHT NOW. Is your behavior with your boyfriend beneficial to your future husband- whoever that may be? Another question I usually ask myself is "would I be ashamed if a Godly friend/mentor found out what we were doing? Would this be something shameful if the public found out? Would it hurt my witness?" 
But again, there is gray area that is different for each couple. It is all about what is going to lead you in to temptation. Also, be wise and set the boundary a bit more conservatively that what you feel you can handle- because chances are you'll cross the line. Add in a little buffer.
Hope that was beneficial! Be sure to share with your friends if you found it helpful :)