Welcome to the forum.
1. Yes, when you use the tool to create recovery media, you get disks that restore your machine back to factory fresh (none of the data or change that you have made will be included). You have to select both boot and recovery media to make all the required disks for boot up and factory recovery.
2. No. The first disk has to be a CD. The remaining disks can be either DVDs or CDs. For an X100e/X120e, you will need one CD plus two DVDs OR one CD plus one double layer DVD.
3. Yes. However, you can reset a flag in a hidden file on the Q: drive that will permit another attempt. Or, you can perform a full recovery from external media and create another set. (Resetting the flag is far easier and faster!!!)
4. You will have to reset the flag in the hidden file after the first successful attempt at factory recovery media, if you want to try again.
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