> >2) could prepared statements have an adverse effect on performance?
>
> On readability, yes, but certainly not on performance.

No, they can certainly have a bad effect on performance. Cached
execution plans don't necessarily provide the optimal plan for every
set of parameter values. And you can run into odd edge cases involving
Unicode characters causing casting issues, for example.

Dave Watts, CTO, Fig Leaf Software
http://www.figleaf.com/

Fig Leaf Software provides the highest caliber vendor-authorized
instruction at our training centers in Washington DC, Atlanta,
Chicago, Baltimore, Northern Virginia, or on-site at your location.
Visit http://training.figleaf.com/ for more information!

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