OK I'm gonna admit it, I'm a lazy old faht when it comes to typing, so I went looking around, and found the site that will answer most of your questions.
http://www.oregonchain.com/faq.htm
Settin laziness aside, I think the biggest mistake people make filing chains is that they don't take a look at how a chain cuts. Instead of sharpening the tooth, they file he11 out of it, and never sharpen the cutting edge.
On the subject of downsetting, couple little pointers here;
First, don't get carried away with this process, I usually find it necessary about every 5 or 6 times the chain is sharpened. I don't use a downsetting tool any more, been doing it too long, and one less thing to find is a benefit. When you do use the tool, don't file into the tool, or you'll overdo the sdownsetting.
Another thing to remember, downset the chain for the wood you are cutting, soft woods you can take out bigger chips, but if you set a chain for soft wood, it will be troublesome on hard wood.
Another thing I'll mention, the eaisest way to sharpen a chain is with the bar of the saw clamped in a bench vise.