1) Yes, the head of the mainsail latches on the hook at the top of the mast. There should be a 2" diameter (give or take) stainless steel ring attached to the end of the halyard. The mainsail shackles to this ring and once hoisted, the ring engages onto the hook. There is a FAQ on this site as well as numerous discussions in the forums about how to make the system work effectively.
2) The halyard will not wrap around the forestay. The halyard should be lead down through the luff pocket of the jib and cleated off on the cleat mounted to the jib tack. The lower forestay swivels so the whole jib, halyard, and forestay turn together.
3) Hobie sells vinyl "boots" that can be installed over the spreader ends. There are also plastic rollers that can be installed. Another option is to wrap the ends with electrical tape or rigging tape. Use something for sure to protect the jib.
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