Quote: "1. What format must the external file take? (CSV, TXT, ETC) what are the field separators or type identifiers."
You'd have to know what you are reading. For instance, I store highscore files in a .dat file, first the names and then the scores. To read a file, you'd have to know the significance of each line and then utilise that data. File extensions matter to an extent but technically, I could save my highscore data to a .txt file and read it in the exact same way I read it now.
Here's an interesting test. Create a small program which loads an image and then creates a sprite from that image. Once done, go into your media file and change the extension of that image to anything you like (remember to also change it in the IDE). Then compile and run the code. You'll find that even though the extention has changed AppGameKit can still load in the image.
Quote: "Where should I locate this external file/ (I have read about My Docs/AGK etc etc.. Can I create the folder or must it already have been created by AppGameKit?)"
For now it's probably best to store it in 'My documents' however, I think you can get away with storing it in the media file. I believe in the next update of AppGameKit there will be a few more file commands which will give more flexibility as to where they are stored.
Quote: "I want to read in a 'record' ( group of fields) at a time and store the data into an array in AppGameKit to use as a 'look up table'.. Is there a record identifier or do I have to 'know' the number of fields for each record and handle this myself when reading the file?"
If you wrote the file then you should know how to load the data back in. Since you are just starting out, it may be best to run a few tests on smaller scale projects, just to get the hang of it.