0=CCMP
 
CCMP is synonomous with AES and sometimes the two are written together (AES-CCMP). This is why the other options specify other protocols (i.e. TKIP).
 
Not sure (it's been a while since I explored passphrase protocols on the Matchport) but it should either ignore the entry or give you an error message if you use an illegal character so just experiment. But remember, the passphrase you set on the Matchport needs to match the passphrase you have on your AP (access point). I find it easiest to just set hex code direct.
 
Questions 2 and 3 touch on a similar thread...what are you trying to accomplish with your serurity? And do you want to run your SRV over the same AP as other network devices (including those that need internet access). Do you need a special IP configuration or multiple IP configs? If no and the 169.254.x.x works for you then use it. And do you need a 63 character passphrase? Every time you need to reconfigure you will need to put in all 63 characters again...and maybe again and again (every device you add to your WiFi network you will need to add this long passphrase. Just a thought.
 
Hope this helps,
T. Jump