A:AnswerIt does have a CD port on the right side of the laptop. I haven't used it yet, though. Unsure about the pixels, but the camera works great for Skype.
A:AnswerNo additional software needed. Yes you can watch through the Microsoft Media Player but you can always download a freeware if you need bonus features.
A:AnswerI asked someone at Geek Squad about this. They advised me to get a new laptop because it's not possible to add more. Wish I would have realized exactly how low on space it was before buying it. (And that the Best Buy salesperson would have better advised me.) Good luck!