If you're just starting, you can gain muscle whilst losing fat at the same time but after a while you'll have to focus on doing one or the other.

A better product for you would be Synergy Iso-7 as it has more calories and contains creatine. This will give you more rapid gains in strength and muscle mass. It is still fairly low in calories and carbs so should yield lean gains.
Take it 1 or 2 times daily (and 1 serving always after training). Adjust the Synergy and your protein and calorie intake according to whether you are gaining muscle. If you start gaining too much fat cut back on the carbs a little.

This usually only happens with the strawberry flavour. It doesn't mean that there is anything wrong with the product, it's just the nature of that flavour in the flavouring system they use.

Yes, and adding a good amount of carbs (50 to 100 grams of waxy maize or maltodextrin etc) will further help with creatine retention in the muscle and recovery from exercise. Click "Bodybuilding" in the top left of the website and then click "Carbohydrate Powders".

Whey protein is just a protein derived from milk, which has been found to be the most effective protein for recovery from exercise and for muscle growth and repair. It is also absorbed the fastest and has many health benefits. So go ahead and use the whey 2 or 3 times per day regardless of your age (I assume you're over 4 years old'). Be sure to take it with a big whack of carbohydrates (maltodextrin, dextrose, sugar, waxy maize, etc) right after training.

Yes, Pharma Whey is very low in carbs and fat and high in protein. Teh best diet strategy is to keep the protein high and keep cutting the carbs and fat until you are losing about 1 kilo per week (more in the first few weeks or if you are very over-weight).
You could also try a fat-burner like Animal Cuts, Xenadrine or Arson.
To further minimize muscle loss, take a creatine product (and don't listen to any "experts" who may tell you that it makes you hold water).
For the best advice on losing fat and maintaining maximum muscle, see the article - http://www.tropicanafitness.com/view/v/article/a/95

The best fat burner-type products we sell currently are Xenadrine RFA-X and Animal Cuts. They contain green tea and other known fat burning ingredients. You are definitely right to keep your protein intake high. Creatine prevents muscle loss when dieting and can slightly improve your cutting results but that's about it.

For the best diet to achieve maximum success,
see The Can't Fail Diet article - http://www.tropicanafitness.com/view/v/article/a/95

There is no limit to how much proteint the body can 'absorb' in a person with a healthy gut. The only limitation is on how much of that protein gets 'retained' in the muscle. Any excess beyond your requirements will be eliminated in the urine. Your requirement will depend upon how many calories and how much protein you have eaten and how recently and on when/how intensely you last trained, your body size and other factors. Your stomach upset sounds like it is something to do with the protein but it is impossible to tell for sure. Many of us here use the Pharma Whey with no such negative effects and we love the taste, quality and low cost. You can try it with more water and this will not affect the quality of the protein. You should also try sipping it very slowly. If this doesn't work, try another brand - Whey Maxx is good and EAS Myopro has a similar nutrition profile and quality and also tastes very good and is about the same price.