Akohekohe- I've locked my bike and so have my neighbors with a chain and u-lock. Even with two locks on a bike, I've seen my neighbor's bike get stolen and I saw two people doing the dirty job.(They got away) ( I'm actually considering about the guard dog, that's on my short list)
Blakcloud-!!!!! The pulley mechanism is genius. One of my neighbors is actually a handyman, I'll ask him if you would consider building me the lever.
As for the folding bike, I'm getting a Cyclocross. So Dahon's are a no-no.
Spinnaker- The shed will be hidden from public view, but thieves jump the fence and climb the gate to get to my backyard. (Then I assume they throw the bike over the fence/gate, a few scratches on a bike won't hurt them) I'm really liking the make a hole-put a pole option. I GUESS, I'll ask my neighbor who's a handyman/carpenter to build me a small shed and maybe put the pole too. I'll keep you guys updated when I ask him.
And on the contrary, like I said earlier, my neighborhood is pretty safe generally speaking. You can walk around safely (middle-class neighborhood), but no one buys a bike because of the thieves/****** who follow bike riders like hawks. And yeah, because the economy is crap, my brother and I just started new jobs after 5/7 months of unemployment. So we're pretty down on cash.
Thanks guys for the suggestions!