To answer your questions as numbered:
1. The blockchain is only "generated" the first time multichaind is called for it on the first initiating node. After that the command simply connects/continues an existing blockchain.
2. You don't need to edit params.dat but you can if you want to change the default parameters. See this page: https://www.multichain.com/developers/blockchain-parameters/
3. This will be some kind of firewall/permissions setting on your server, which prevents the MultiChain process binding to arbitrary ports to listen for incoming connections. You'd need to consult the hosting company or system administrator to understand more about this and try to resolve it.