1. There are several players on the boards from TN. I think they are mostly from the Nashville area, so depending on where you are, they may or may not be a good place to check. Polarius, Colin Michael, and Raven are all from TN (though I can't remember if they all still live there for college or not), among others. I'm sure they could help you out. I know Raven often says he wishes there were more tounies in his area, so maybe this could work well for everyone.
2. I don't think you are technically supposed to, but I don't know how that would be enforced. I've attended closed deck tournies where I paid half the fee and used my own starter, as the host provided that option. I would check the tournament guide or email Rob about this though, just to make sure. Obviously if you charge the full ~$10 you should provide a deck and the three boosters to all involved.
3. This depends on the host. Since you are paying for the cards that you provide, I suppose you could charge players less and keep their packs after the tournament. But usually Sealed is more expensive than open categories because players keep the cards they use. That is what is traditionally done, but I've been to tournaments where the host offered a reduced entry fee in exchange for the cards the players received.
4. Check the tournament guide on Cactus to see the requirements for hosting a tournament. Anyone can host who meets these requirements, so long as all of the proper steps are taken.