Hi ,
 Re 1 and 2: I don't have access to any additional facilities.  I am a run-of-the-mill editor like you, not an administrator.  Flagging suspected copyright violations is something any editor can do; it does not require administrator privileges.  The procedure for doing this is described on WP:CP.  It does take an administrator to delete a page, however, which is the usual result from suspected copyright violations.  The notice is posted on the article in question, and on the WP:CP page, nowhere else.  Again, I have no subscription to EB, nor any tools except search engines for detecting copyright violations.
 Re 3: If you scroll down WP:CP, you'll see it consists mainly of reports, with the occasional comment, many of which are not from the original poster.  Typically the original contributor does not respond at all within the seven day window.  There are many new contributors who happily copy-and-paste from other websites, with utter disregard of their copyright notices, and our policies.  Have a look at some of the listed items for examples.  Most entries on the WP:CP page are in dated sections under "New listings", but some have "fallen off the top" into "Older than 7 days".  
 Re 4: If you look at the original report on WP:CP#July 11, you'll see that  listed that URL.  Presumably the same URL also appeared in the original copyright notice.  How that URL was found, I have no idea, but I would suspect search engines before spyware.  8-)  It's by a human comparison of that page with yours that I perceive a certain amount of similarity in phrasing and structure.  I'm prepared to accept that it's within the bounds of coincidence.
 Re 5: You are correct; permit me to clarify.  People often reproduce text from other websites citing permission with various constraints like "in Wikipedia", "for non-commercial purposes", "providing it is quoted without alteration", or "on condition that the source is credited in a particular way".  Unfortunately, none of those (except perhaps the last) is satisfactory for text in Wikipedia for the reasons I explained above.
 Re 6: New articles can be seen at Special:Newpages.  Changes to all articles can be seen at Special:Recentchanges.  Everyone has their own criteria for which entries they check, but most people are more suspicious of anonymous users than of logged in users.
 I note with regret that  has just blocked you for 24 hours.  In the same circumstances, were I an administrator, I would probably not have done this, but you have to admit that you did twist each other's tails quite a bit.  Perhaps this will give you a chance to concentrate on your other project.  8-) Note that you can still edit your user page, and I think you can still send e-mails using the "E-mail this user" link.  I'll add a note to both entries on WP:CP that we are in a dialogue.
 This is probably an unnecessary remark, but I feel I should point out that if you edit Wikipedia from a different address and identify yourself to me, I will feel obliged to report it as block evasion.  This is independent of my feelings about the block itself.  Sorry.

 03:46:38, 2005-07-16 (UTC)