Questions on Formal Project Management Template

.. Running RTC 3.0 on Windows 7 64-bit:
1. Though only Change Requests and Business Needs are configured as Top
Level Plan items and "Include all items" is unchecked the Work breakdown
and schedule view for a Release plan still shows Tasks planned for the
iteration.
2. With the iteration dates set to a four month period, adding even a
single task without an estimate shows the task as critical (red) in the
Gantt view. This doesn't seem right?
3. How exactly does the "Zoom to selection" work?

Thanks