I did mine off the frame but that would add some ridgitity to it so I think it would be better. It's probably best to leave that to the point when you're done working inside it as the scrapes and bumps on my back and head can attest to.
Yep, bolt it down to something firm and also brace the interior with some old tubing or even angle iron. You want to make some crisscross bracing to keep the body from flexing when you cut the top off. They will move around more than you can imagine.
i did mine off the frame, only because i didnt have a frame to start with. I actually think it would be easier to do it a few inches above the ground, makes it easier to reach everthing. Like everybody says, get is level, square, and brace the heck out of the cab at dash level.