2) If I try to select "Group ALL" or "@ALL" it converts it to lowercase (all) and the permissions I set do not apply for @ALL. The only way I could make this work was to modify 'acl.auth.php' directly and change to "@ALL". Super annoying.
The drop down menu for "Permissions for" has four choices, which include two standard groups that appear beneath Group and User.
These are @ALL and @user. To set permissions for @ALL select @ALL, for @user select @user. Then tick off the radio buttons that apply.