As you mention for setting up ES, is this the directory I upload the ES Zip file and extract it into this directory? Also, once I extract this zip file, where do I add the license file?
Yes, just extract to the destination. The license file will go in the "bin" folder.
Being new to all of this, do you recommend I rename the folder "site1" to something else or create a subfolder to keep the ES web service separate from my main official ProspectHelper.com site which I am going to create later? Just looking for best practices here.
This is really up to you. Generally I give it a meaningful name.
Also you mention in another post, it would be easy for me to setup a way for my app to check a version via a web service and have my app automatically download and install the latest version from this site if they have permissions. How do I accomplish this?
Well, this is a pretty loaded question
You still have to write the logic, but in short you have to create the version that to which your application will query. In suprt-short explanation, I get the version from the local assembly, then query the Version table to see if they match. If not, then I will download from a pre-determined location OR pull the downhload location of the new build from the same version table (i.e. a VarChar field containing the URL for that version).
When using ES, I believe I can have different clients connected to different hosted databases. The only limitation would be the number ES licenses I have purchased determines the number of client machines that can connect to different databases using ES. Is this correct?
Well, if you are going to use different databases and then each of those databases have a different DataSourceKey on the BO, then yes (same applicaiton but more than one database being accessed within the application). The data source key on the client and the ES server must match. If you are going to use the same BOs and then want to redirect them to different databases (i.e. 2 different clients with the same data source key names) then this will not work and you will need to have a separate ES site for each database. If your application already handles different clients with the same database, then this is not an issue.