1. I try to pass on the left but that's not always possible. I generally try to pass 'safely' which sometimes means passing on the right. I give a 'passing left/right' warning but just to check the box, I fully expect the person to swerve immediately into my path. Always keep to the right when can be safely done but when nobody's around and I know that nobody's behind me (I have a rear-view mirror) I will go in the middle.
2. Follow the rules of the road, always. I'm not too knowledgeable about NY laws, but in MA a cyclist is a vehicle, can't imagine it's different in NY.
3. Flashing lights are "be seen" lights, steady lights are "see" lights. Many people have a solid + flashing front light set up.