Stayed here in late May 2009
1. Does not have a lounge.
2. Not that close to the main attractions. You could walk about 20-30 minutes to the main areas but cabs are the norm. We took tours (Sound of music and Hitler's peak), which pick you up from the hotel. Avoid the Mozart museum. It sucks... and I like classical music and Mozart.
3. Yes, it's the main station. We came in from Munich and walked to the hotel. Just head out of the station, walk right past the MCD (i believe), turn right one block and the hotel should be right there on the left hand side.

There is a great place called "ZUM GUTEN HIRTEN" down the block that the hotel recommended. Really good food.