Welcome to the real world!
Don't worry, I'm in the same boat (but I have a MA, which makes expectations higher/things worse)
First, let me say that you ask a dozen people advice on resumes and cover letters, and you'll get a dozen different answers, many of them contradictory. Take everything with a grain of salt, there is no magic bullet nor even industry standards (exception being typos, grammatical errors and bad formatting).
Also, the main advice from the career center at my (well respected) grad school: NETWORK! NETWORK! NETWORK! Find people whose jobs you like and want to have and take them out for coffee. Ask them how they got the job, and any advice they have. At the very least, they will meet and know you, and may be able to refer you later on.
Third: Don't fall into despair! Yes, there are horror stories out there, but there are people with jobs too. This may be difficult in Seattle with weather like it is, but it's important.
Another Also: consider volunteering. Find an organization you like and offer to help. This will build your resume, show character, and lead to more contacts.
As for your questions:
1- To contradict everyone else here: I email my resume and cover letter as a PDF doc (which you can do easily on newer versions of Word). In my email I say simply, "I'm sending you my resume and cover letter as a PDF document. Please confirm that you receive it . Thank you." Though it wouldn't hurt to cut and paste your cover letter into the body of the email, what's more important is the content of that email.
That gets me back to another important general point: carefully read the job description and tailor your resume for the job. I talked to someone the other day who got 200 applications for one job, but a large percentage were form letters; they obviously didn't read the description, and their resumes were discarded first.
2- Provide references if asked. Instead of worrying about these details, ask for people to read your resume (preferably people who hire and have read lots of resumes). They will tell you what you need to do, but again there's no magic bullet.
3- Fact is the job market is extremely tough right now. (Best quote: from my neighborhood barista who was hiring, "We've had over 50 applications! There are people with master's degrees and no barista experience!"). You just need to have a flawless resume and a cover letter that gets people's attention and says you're right for the job. And you need to network!
4- I say visit in person. Face to face contact is much more valuable than online. Call them up and ask to make an appointment. I did it yesterday!
5- There's no way to tell, it just depends how desperate you are and what you're willing to go. If your willing to fundraise or pound the pavement for ASPCA, you can work tomorrow. (I've never heard the one month per $10k figure, but that sounds reasonable.)
Good luck and let me know if you have other questions. We're in this boat together! Now, back to job hunting...