The answers to your questions are:
1) Depends. If you do "Upgrade" installation, you can only install to the partition with existing Windows. Otherwise, you're free to choose.
2) Yes. Windows can be installed to both primary and logical partitions.
3) Depends. If your computer is BIOS-based, then no. If your computer is UEFI-based, then yes.
4) AFAIK, no Windows setup has ever erased the ENTIRE hard disk on which it is installed. It should only affect the partition on which Windows is going to be installed. Despite this, you might want to back up your data in case something unarranged does happen.