I too would like to know this
1.) Variety of ways, usually involving time and experience on the site contributing in a positive way.
2.) Yes, but sadly he can't be bought. Money, sexual favours. None of them work. It is written in legend that if you come up with an original joke and give it to him you may become a golden mod but no proof exists.
3.) Yes. Can you imagine what it would be like if Mods had to runs every comment they make by one person?
4.) Yes, control over different forums, access to the VIP area, lots of differences
5.) Lol yes this happens and can be pretty funny.
6.) Not unless you count the twice yearly mods holiday, but they don't really come from there, just visit.
HTH