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1) There are numerous utilities that will convert between various audio formats. Some are freeware, others charge for the utility. Just do a search on the internet for MP3 and/or WMA encoders/converters.
2) You are correct, you can use WMP on the PC to sync/copy files to your Axim (I believe this includes playlists). I have not tried this method so don't know how well it works.
3) I don't have exact times, but using my card reader I can copy a 4MB MP3 file in about 5 seconds. With ActiveSync it would probably take close to 1 minute for the same transfer.
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