1) I'm not sure I follow what you mean by "Utilize My Power Store" What exactly is it you ar to accomplish and where are you getting stuck.
To be able to upload your site to the remote GoDaddy server, you will need top configure the remote tab of the Site Definition to connect to the GoDaddy host through FTP.
2) Yes, this means that you can set up the testing and remote servers to connect to your GoDaddy Server. In this case you would not be testing the application on your local computer, you would be testing on the live server.
3) No it should not create any problems.