1. W
eird question and one that unfortunately I can only find conflicting reports of online. Drú-Buri-Drú in Druadan forest on nightmare difficulty has the clause that he can only take one damage per turn.
A large number of people seem to think this is a mistake and because of the wording progress can be applied normally meaning he could be dealt with in one turn.
An equal number of people seem to think that even though the progress is placed instead of- That it still is just one progress.
I am in a third camp that I think it is intended to only affect damage, and isn't a mistake on developments part, but rather a safeguard incase an effect incidentally damages him through non combat means- Because it would be very unfortunate to accidentally kill him through normal damage when it is a requirement to kill him. The quest specifies that only damage dealt through combat places tokens, hence why they would need to implement something like that.
I could see it going one of the other ways, but seeing as this is a nightmare deck and he is key to the quest I really don't think this would fly under the radar.
2. So I know there is an action window for you to play cards during the burgle resolving between step 2 and 3 for Bilbo to do an action, which therefore do things like let you play Dareon's Runes or king under the mountain. The way I interpret how this works is that the first revealed card you peek at for the burgle is what you are trying to match with the cards in your hand.
For example you reveal a two cost card and don't have enough matches in hand you could use an action that draws you a card to draw it and then discard it as part of the burgle. The only thing that would select a new cost/type for burgle would be to pay the Baggins resources to reveal a new card, right?