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You can go with unicode or ascii
Regarding your question#6,
It would be nice to have DAC server and Informatica server on same box, since you are going with all in same box no issues, in future make sure you are putting them in one box, that helps you to configure dac or else need to go with some workarounds related to domains.infa file.
For dac and infa clients, in generally they sit together for our dev work no need to worry.
You got whats required.
If helps pls mark :)
Thanks Srini for your reply.
I hv installed informatica client and server using database INFA.
All databases(DAC,INFA) characterset having WE8ISO8859P1.
Please let me know which code page I hv to select while creating new PowerCenter Repository Service. ?