1. Does my heroselect folder have to be in the Marvel Ultimate Alliance folder (alongside folders like actors, data, etc.)? [Currently my heroselect folder is on a different drive -- can I keep it that way?].
2. Is it required to have the exact same characters (no more, no less) installed in the game AND included in my herostat.cfg as are included on the spreadsheet? If so, does the order matter?
1. As long as it is in the same folder as herostat.cfg and passvalues.hero it should work.
2. The only restriction is that the names on EZ TEAM.xls match the names on top of herostat.cfg, and that the characters you've chosen are in both files. For example, in my previous herostat.cfg I had Juggernaut as "juggernaut", while on E-ZStat Juggernaut is under "Juggernaut_hero".
If in your herostat.cfg you have Juggernaut as, let's say, "juggy", you'll have to go to the sheet "teams" in EZ TEAM and change "Juggernaut_hero" to "juggy". (You shouldn't change the list on herostat.cfg, because then you'd have to change herolist.hero too).
My suggestion is to crossreference your herostat.cfg list with this one:
If you want, PM me your herostat.cfg list and I'll check which names you should change. Heck, I'll even add those that aren't in the previous list as a bonus.