So I have an app that has been in the iTunes app store for a few weeks now, and people are asking for an Android version. Knowing absolutely nothing about Android, I've been looking all over for a complete reference that covers all of my questions and haven't really found it.

In my current iOS app which is universal for iphones and ipad, i have image folders for iphone3, iphone4, and ipad resolutions for every image in the app (making it a quite big app). Now that I see that Android's have a seemingly unlimited number of screen resolutions that creates a number of questions...

a) Should I just set the config.lua to 320x480 letterbox? Do people who buy Androids understand that because of the different resolutions that their apps will likely have black bars on the top and bottom?
b) Does it matter if I set the config.lua to 320x480 or 640x960?
c) Why does the Corona Simulator only list 4 types of Androids? Are those the main one's that people accommodate? I assume there are many more resolutions than just those four? Is there a simple list somewhere of EVERY resolution Android supports?
d) When setting Corona Simulator to "myTouch", I can't read half of the text in my app because of the small screen. Is this a good representation of the myTouch phone?
e) If the text on the myTouch *is* too small to read is there a way to tell the Market that you don't support phones with smaller screens?
f) Are apps universal on the market? For example, you can make a separate iphone and ipad app, if you want, or combine them as one universal app that works on both platforms. Can you make separate apps for different Androids or are they all universal?
g) When I was developing for the iPhone/iPad, I noticed that the simulator doesn't give you the full concept compared to actually testing on a real iPhone or iPad, mostly with regard to speed. For example, we have really large resolution images loading if the app senses that they're using an iphone 4 or ipad. But when I loaded it on a real iphone 3, it was ridiculously slow and choppy trying to load those same images, so I had to make a new folder of iphone3 resolution images to speed up the app for those older models. Does the android handle large resolution images better than the iphone? I suspect I'll likely have to find someone with an Android so I can test it legitimately. Do people have good solutions for testing on all the various Androids?

My app partner has all but promised these Android people that we'll make a version for them, but I'm starting to wonder if it's worth the hassle. Thanks for any insight you can give this Android newb!