J. Lee Graham

Paul, I want to double check a couple of sources before I answer one of your questions definitively.

Majesty is right when he says that you can take much more license after the Exposition (and first Episode) are out of the way, and the only options you have regarding the subject are "Real" (the same diatonic intervals as the original) and "Tonal" (with intervals altered to make the subject fit the prevailing tonality at the time of its entrance, but with the same overall contours as the original) - though you can turn it upside down (inverted), backwards (retrograde or al rovescio), or make some or all of the note values longer (augmentation) or shorter (diminution). After the Exposition, partial statements of the subject are acceptable.

I'll answer all your questions when I get home.