1) When setting the reel for your lure, turn the mag brakes all the way off because it will effect the fall rate some, nothing drastic, but there still will be some effect. Then, since you're getting used to the reel, I would recommend turning it back up to 5 to start with and you can adjust it from there depending on lure weight, wind and how comfortable you are with casting. I started out around 5 but I'm down to 1 or 2 with the mag brakes for most situations now.
2) I would set the centrifugal brakes at 2. I believe in having the brakes set up evenly (since the Tournament only has 4 brakes you would only have the option of 4, 2 or 0 if you're basing your setting off this belief). I feel like 4 is probably overkill and I've personally never been able to free spool with 0 brakes on without catching a wicked backlash.
3) The way I understand the difference between centrifugal vs. magnetic brakes is this: Centrifugal brakes are going to slow down the proportional to how fast the spool is spinning, via friction. Thus it will have a greater effect when the spool is spinning fastest - at the beginning of the cast. Magnetic brakes work to slow down the spool based on a distance between the magnet and the spool. Magnetic brakes will have a greater effect when the spool is rotating at a slower speed - towards the end of the cast, pitching, flipping, etc. This is why, I feel, centrifugal brakes are better to have on a reel. Magnetic brakes are nice to have, but you can always use your thumb to slow the spool down towards the end of a cast vs. at the beginning.
Here's a sciencey explanation of the braking systems if you want to impress your friends.
http://www.japantack...rake_system.htm