No the AI is not restricted to that area. The location is only the area it is applyed to. I assume your using junkyard dog?
2 and 3 are kind of the same question.
Use Display Text so it would look like this.
CODE
line 1
line 2
line 3
line 4
line 5
Welcome to My Map
Made By Me
line 8
line 9
line 10
line 11
Line # are just blank lines and they act as placeholders
In the game you can only display 11 lines at a time. So if you want to clear the text off the screen or have another line appear on top of the next. You need to display another text with several empty lines.
Hope this helps,
Bolt_Head