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1. It's probably ok if it's not too hot. You could probably just leave it on your seat if you're worried about it. Just make sure it's not overheating.
2. From my experience, you can keep it in your pocket, in a pda case, wherever, and get a fix. I've sat on a bus with it in my pocket and still gotten a reliable signal.
3. I have no idea. You're probably fine as long as it's not buried under your seat or something.. I think..
4. It takes about 30 seconds in my experience; I turn the M1200 on, wait about ten or fifteen seconds, turn on my X51v, activate the GPS, and the fix is there within a few seconds.
5. I don't know. I've heard the Media Tek is better, but naturally I've read much that's good about the SIRF Star III. Someone more knowledgeable can answer this better.
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