The Microsoft IIS SEO Tool Kit
I am yet to find a site that does not have a pile of errors, I get all my sites free from violations, this gives me a head start (how big that head start is is debatable)

If your technical side is not perfect all your SEM is discounted. Its like fishing with holes in your net.

i would suggest that you are more than likly not flaged, but the links have been found and discounted.

Yes you may still rank for long tails as there is less competition.

If you have been punkished for un-natural links, you more then likly get a message in GWMT

Ask yourself, why would someone read you press release?

Will they gain you links?

will they drive traffic?

My guess is that no one will read them, and the answer to the other 2 questions follows.

i would put my time and effort into somthing else

yes it is, you are trying to game the system, it is also very easy for SE's to spot, you will end up with a un-natural link message from google in your GWT