Yehuda,
1. Lite is the v 1 of DMX. DMX 3 has added the following features: search, categorization, subscription/notification, flexible data model to allow module addons to change behavior of module. Apart from these added features, I believe the UI is a marked improvement as well.
2. You can always demo locally as it does not require activation if called through http://localhost/etc.
3. The location can be changed at all times as long as (1) you move ALL the existing files, and (2) you leave any subfolder structures intact. DMX uses a 'base folder' for storage that can be changed.
4. One basic prerequsite for a document management system is separating file names from the storage as new versions may have the same file name but we don't want to overwrite existing content. Secondly, the renaming of files serves security (obfuscation and prevention from download). The original filename is placed in the stream as you click download, so I'm not sure what the gibberish is you're referring to.
Regards,
Peter

The versioning works as follows: if you edit a document and decide to upload another document over it, a new version is created. DMX Lite also does this.

Peter

Thanks.

Y.