1. Two slots as a pair. Stock configurations are 2x2GB. Best to upgrade as a pair. I have the same model as yours which I have used 2x 4GB. 2. Just a normal DDR3 1600MHz will do. I'm not sure about where to get it in the UK though. I'm using this currently. (image from Google)
There are diagnostics LEDs instead. Near to the PSU connector. From bottom upwards - 1. Indicates that the computer is turned on. This LED will be ON as long as computer is turned on. 2. Indicates that the computer is turned on. This LED will be ON as long as computer is turned on (but is not asleep) and power supply and voltage regulators are working correctly. 3. Indicates that the computer and the GPU are communicating. This LED will be ON when computer is communicating properly with the GPU. 4. Indicates that the computer and LCD panel are communicating. This LED will be ON when computer is turned on and video signal is being generated. If LED 4 is ON and there is no image on display, then the LCD panel or the cables between LCD and logic board might be installed incorrectly or need replacement. A. Diagnostic LEDs B. Real-Time Clock (RTC) Reset Pads C. Coin Battery Voltage Test Pads Phew. Hope it helps.
Have you verified with Apple with regards to the Quality Program? Make a trip down to the Genius Bar and verify whether your unit is still eligible for the FOC replacement.