Notification by email -copy of customer's order confirmation email received by 'storeadmin@domainname mail box.
Go to sales > orders list and select the order (by order number as per the invoice).
Click Invoice button (top right) and check all details are there that you'll need, payment is in order, stock available etc. to accept and authorise the order then click 'Submit Invoice' at lower right (check the 'email copy of invoice' box if want the customer to get a copy of the invoice)
When the order had been physically shipped, press 'Ship' (upper right). Press 'Submit Shipment' (lower right) to complete the order. (order status goes to complete)
These should be no more than 600 x 600 othewise they will distort the light box zoom facility and will not look good generally.
When inserting images, with the current version of Magento (188.8.131.52) the wysiwyg editors insert image toolbar icon doens't work. Sorry, but you'll need to use a workround which is to 'hide editor' and go to the particular point in the html where you want the image to be then use the insert image button and select from the image manager folder as usual. Then show the editor again. The toolbar icon with it's popup window (appearance tab) can be subsequently used to align the image, apply padding etc.
Home Page Featured Products Panel
Go to Featured Product > Managed Featured Products and follow the user interface.
The top 8 enabled products show on the panel.
Go to: Slideshow > Manage Slideshow and upload and enable new images as per the interface.
Additinal slideshows can be configured for other cms pages. eg. the Shop page.