I got some more information from Jennifer Dunnam:
Question 1: This phrase in the manual will be clarified; “compound words” can be divided on a manuscript [formats 1.1.10]
Question 2: Formats indicates that the letters ISBN: should be kept on the line with the actual number. There is an example in NLS 19.2a(1)[g] showing the letters “ISBN” kept on the same line with “transcription of”. This is in error and will be fixed.
Question 3: Follow print (NLS 17.1d, Formats 1.10.1)
For recent and future revisions to the NLS manual, be sure to check the “revision log” at http://www.nfb.org/transcribers under “literary braille transcribing” to be sure that you are working with the latest versions of the lessons.
Thanks for Jennifer for helping answer this question!