depends on what kinds of corals you will be keeping...i wouldn't go under 6-8".. you might have some serious heat issues in that size tank if you do.. you will definitely need some fans.. if it were my tank, i would probably go about 10-12"
anytime!! about the lights, if you want them lower than that, start high and then gradually bring them down if the temperature allows it....although ,with the lights low, it could burn up some types of corals
I have a 10 gallon tank and I am wanting to buy a MH light and I am thinking off a unit thats around 100 watts. I think this would be good for some small coral and other small things.
If you have dcecent reflectors, the height above the water has almost no effect on the the intensity of light actually experienced by the corals. Distance below the water surface is important (because of the absorption of light by the water), but distance above the water has minimal effect (unless you have cathedral ceilings, and mount your against the ceiling).