As for your questions..
1) A small group would be nice, I was in an "asylum roleplay" before; and I think its downfall was that it had too many people!
2) Doesn't matter much to me c: I like past/present/and future
3) I usually do my own characters but I think fairy tales would be so much fun to do (Imagine Snow White in an asylum; deathly afraid of apples, and wants to take every man as her dwarf slave. God forbid she sleeps anymore, always afraid of never waking up!)
4) None so far, but I'm sure as it goes on we could think of things.
ps; I saw you posted this in free as well- if either take off; let me know? c: