Hi Walman, I am gonna take a stab at answering some of these questions for you, but don't take my word for it. You're questions really aren't simple to answer, and involve a much deeper investigation then appears at first glance. In fact, the heading "electrochemisty questions" really doesn't do them justice. So I'll give this a shot, but there's a chance I might miss some stuff out. I hope I don't get anything backwards, but I am really hungry and a bit sleepy. I just couldn't pass up trying this though.
1.) Well I am not really sure what you mean by "more energy potential". When an atom is ionized, i.e. it looses or gains one or more electrons, the energies of the atom change. One of the reasons for this is that the remaining electrons live in a different electric field then they did before the ionization occurred. So from a quantum approach, they are now seeing a different potential then before (modeled by a perturbation), which results in a change in their wavefunctions and a change in their energy states.
2/3.) When people say that metals, in this case copper, have "free electrons", they are referring to a classic model of conduction...which isn't really correct. First understand that in a strip of copper wire, there are many many copper (and some other contaminants) atoms. These atoms are arranged in particular lattice structures (diamond, for instance is a particular lattice structure of carbon atoms). Now the arrangement of atoms is incredibly important, as it will determine, among other things, how the electrons in a material behave.
Copper has certain electrons in the wire that aren't well-confined. I mean that the weakly bonded, outer shell (usually) electrons of copper aren't held very tightly by the nucleus of one atom and when a strong E-field is applied, the electron gains enough energy to travel to a neighboring nuclei where it may collide and transfer it's energy, or it's presence may be enough of a perturbation in the local e-field surrounding a second electron that that e- then goes off. However, when I say strong E-field, understand that this is all relative. The electron is so small and weakly charged that on a macroscopic scale, 1 V is a strong E-field. Strong enough to see current flow.
Now electrons don't just go flying off copper that is just sitting there because it is energetically unfavorable. I mean that the e- is "bound" to the nucleus of the atom through an electromagnetic interaction. The energy of the atom system is lower with the e- in it's orbit then if it was gone. If the e- leaves, then the atom is now charged and is generating a E-field attracting negative charged particles, and until is regains an e-, it will be at a higher energy state then before. Since everything in nature is trying to achieve the lowest possible energy state, this scenario doesn't happen unless the orbiting e- gains enough energy that it's leaving will create a lower energy state then it's being there.
4.) Ah, an easy one. The direction of flow of the electrons is technically opposite the direction of electric current. Way way back in the day, current was defined as the flow of positive charge. Now obviously protons don't go blitzing around a circuit. However when an electron jumps off the atom and goes in say the +x direction, it leaves behind a "hole", or a locally positive area. This hole, as the math works out, has nearly the same mass of an electron, and a positive charge. Electric current is technically the flow of this positive charge, or the holes. Remember, positive charge always moves in the direction of the electric field, and negative charges always move opposite the electric field.
5.) Well, of course what you said is not the ONLY case of what happens when an electric field is applied to a conductor. Exactly what happens depends on the strength of the E-field, but it is by far the most common thing to happen. However, if there is no E-field across a conductor, then there won't be any current flow, of course.
As I tried to explain earlier, a conductor has many electrons that are weakly bound within it's structure. However, they are still bound and unless some energy is added, they are UNLIKELY to spontaneously break free. There is a probability of this happening, but it is low. Also, this idea of the e- gaining enough energy to overcome an electromagnetic barrier is the reason for the 'sparking' you ask about. Now the imposed E-field does affect all the electrons in an atom, but some are affected more strongly then others. The outer electrons are the ones that are responsible for the flow, but the inner electrons are affected too. However they are more tightly bound by the nucleus, or specifically the protons and the E-field generated by them. Hence, they don't go flying off.
6.) I think I pretty much already covered this earlier.
7.) Insulators don't necessarily contain few electrons, or fewer electrons then conductors anyways. Insulators don't conduct well because their outer electrons don't break free as easily. Now this isn't to say that individual atoms or molecules are harder to ionize then those atoms in conductors (although this can be the case). This is dependent again on the structure of insulator with the atoms/molecules it is made out of.
Maybe this terminology will help clarify what I mean:
Every material has two "bands". These are the valence band and the conduction band. Now in a given material there are electrons which reside in the valence band. These electrons, when sufficient energy is supplied, can jump the "band gap" into the conduction band. These bands are essentially collections of energy states derived from a quantum mechanical analysis of the wavefunctions of the electron given certain potentials. The potentials are determined by the local environment of the e-, which is determined by the lattice structure, atomic structure, and/or molecular structure.
Well, ok. That was my try at answering these questions which, I think you can now see, are farther reaching then perhaps you originally thought. General chemistry and even an electrochem. class will definitely clarify some of the things I wrote here in my terrible post, but if you really want to understand WHY these things are the way they are...take quantum mechanics and electrodynamics. That will really answer your questions at a more fundamental level then your chemistry classes will.