1) The device calculation starts out with SCF calculations for the electrodes. The electrode ground states give boundary conditions for the left and right ends of the central region electronic structure. Lastly, the SCF for the central region is done. The 3 different k-point sampling you supply (left electrode, right electrode, device) must all be exactly the same! Do not worry about the many k-points along the Z-direction, these are only used during the electrode calculations, not for the central region SCF.
BTW: it is important to use many k-points along the Z-direction in the electrodes. Helps determining the electrode Fermi levels with great accuracy, which improves convergence of the central region SCF calculations.
2) Yes, keep the acoustic sum-rule turned on for the DynamicalMatrix calculation.
3) Finally: Looks like your script was generated with VNL-ATK 2015. I suggest you upgrade to the recent 2016 version.