1. do I need to apply more torque to a bolt that is suppose to be applied dry if I put anti-sieze on it.
This is what would be called a wet torque, so you would up the torque by 10%. However if the bolt has been torqued already so it has been stretched. I would use the dry torque.
2. Are bolts more likely to work themselves out of the case if they have anti-sieze on them.
No, it insulates the two metal surfaces from each other. It also hardens a bit and fills the voids in the threads a bit.
3. I have aluminum anti-sieze...should I have copper instead
Copper is really for high heat use.
4. Is there anything I should NOT use anti-sieze on (I'm sure there is...stupid question in hindsight)
Well you would not use low temp anti sieze on exhaust flange bolts due to the heat.
5. the haynes manual says that I need to apply locktite to a bolt (damper fixing socket socket cap screw: clymers calls it the piston rod thread...while I'm reassembling the front forks on my cb550k...anyone know which bolt this is and is the loctite really necessary? I think they are talking about the allen bolt in the bottom but I stripped that thing getting it out in the first place...I'd hate to put loctite on it without being sure I need to.
I am not certain which bolt they are referring to. In most cases the milder Loctites are fine. This product also insulates the two metals.