[Mazin]

1. There are no specific requirements. Your hastily drawn storyboards will count, but remember that storyboards are judged too.
2. Animate one wing flap (one up and down), go into the Track Editor for the wings, and set the wings' Out-of-range types to loop so the animation loops over and over.
3. I dunno. My guess would be to fib it. I'm pretty sure volumetric lights can't bounce, but particles will.