1. It depends on size and what your friend have available to them. If it is under 700 mb feel free to use a CD. Most modern computers have DVD drive and burners so have no fear there either.
2. Zipping is not needed, but it's your choice. I use the click team installer to create an installer and desktop shortcuts to make life easier on the guy installing it. Xplosis, a member here also made an installer. One thing to also do is add a link or a legal developers copy of the latest Direct x 9 installer. Even a new computer with Direct x 11 will still need to run this as the newer versions of direct x 10 and 11 are NOT completely backwards compatible. running the x9 installer does not replace x10 or x11, it just fixes a few things so FPSC will run on it. If not they will get an error.
3. Are you in the USA? If so the copyright is automatic upon the first time you print the name, copyright date, year and owner. Proving it is another problem. Some people will tell you to mail a copy to yourself and never open it so you have a sealed envelope with a US post mark and date (the poor man's copyright) but that will not hold up in court. The only evidence allowed in a supreme court copyright hearing is a Library Of Congress official copyright. Those can be easily obtained by filling out the paperwork and paying the filing fee ($35). Check out the Library of Congress website for more details.
http://www.copyright.gov/
