Hey Svein,
1. The sobi import function is not written in a very clever way. It will try to import all entries at once, instead of doing it in batches. Which is perfectly ok for small db sets, but for larger databases it can lead to your result. Try to increase the timeout. Make it 120, 240 sec etc. 1100 entries is not that much and a good server should be able to process the entries within 30secs..
2. We have a geocoder function in the backend. Just select the entries that miss coordinates and click geocode (make sure to read the instructions - do it in a batches of 100)
3. No, hotspots copies your sobi categories and assigns the hotspots to them. Once the import is complete you can delete the entries that you don't need.
Cheers,
Daniel
P:S. Sorry for the troubles - we will improve this stuff in a future version