No worries, those are not stupid questions at all.
1. Basically only devices connected to the same network, which is the cloud connected to, can access its dashboard. And even then you'd need your username and password in order to log in and manage everything regarding the cloud. As you might have already noticed, you can add users and manage all the shares they have access to, including the read/write privileges. You decide and set it from the dashboard, so basically no one can access any of your information without a user name and a password. As for the public folder - this is a folder which is accessible to all users with both read and write privileges. So basically everyone who has access to your cloud can store files there and modify existing ones. This is convenient if a bunch of your family members or friends have users for your cloud, but you've set personal shares for everybody and let's say if someone is away from home and wants to share a file with everyone e.g. a video - s/he can upload it in the public share where all the users can see it.
2. As
@ShakenNstirred has mentioned, just install the My Cloud app. Once you enter your credentials and connect, click on to top left corner and scroll down to select "settings". From there you can set Auto Sync to "Wi-Fi only", "Always on", or "Always off". Scroll down a bit and you should see "Back up options", select it and mark Camera back up. If you'd like for the app to backup your videos and photos by using your cellular data plan as well, you can select it, but note that this might be a bit costly depending on your plan. Other than that, you can set the destination path and folder of the cloud as well.
3. This is nothing to worry about. Basically this happens if you have some backups scheduled or it might have something to do with your network. It always happens when I turn on my computer although I haven't accessed it. It just goes for a few minutes out of sleep mode and then goes back to slowly fading in and out. If the leds bothers you, there's an option in the dashboard's menu, which can turn them all off.
Cheers!