3. I have done experiments in the past with this. I was never able to get CFS3 to do anything consistent with AI aircraft.
4. It depends on the mos file if it degrades the texture. If it was initially made for a 1024x1024 texture, using a higher resolution texture will still display at the lower resolution. But a mos can be created for a 2048x2048 texture just fine. There are also some options on the mos editor that have an effect on quality, but I don't recall them right now. In the latest SJ Spitfire packages, I cannot tell any difference in quality when a mos file is used vs when it is removed. Of course in terms of mapping the textures, the only real purpose of having the whole main texture on one sheet is so you can use a mos file so you can apply bullet decals. Anything that wouldn't look good with a bullet decal on it has no specific need to be on the main sheet.
On a somewhat related note, it may be possible to add multiple regular layers to a mos file, so that finer details (small stencils and such) can be applied at a much higher resolution than if they had to be painted onto the main texture. I've not experimented with this, but I do think there may be some unexplored potential in mos files.
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