In my very humble opinion:
1) If you open source, be proud of your code. We all know that there are errors and mistakes along the way. There will also be more, so do not feel that you cannot publish them publicly. You can!
2) Definitely. This is probably the order, too, because the order that people using your product will read. They will need to use your software before they decide to work on it.
3). The best advice I can give is to have clear instructions for creating, hopefully with scripts to help people set up the environment. The common plague with open source software requires new developers to download many libraries and set up their box to work in the correct order to be able to create software. This, for me, is very frustrating and can throw me off very quickly.
Good luck
Joshjordan
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