BenjaminNYC,

I'm not as optimistic as the previous posters. Here's my take on your questions:

1) I very strongly doubt that Air Madrid, a LCC, interlines luggage with any other airline. You will need to collect your bags on arrival, just as you would if you were staying in Paris, then head to check in for your Air Madrid flight as if your trip were originating at CDG.

2) Air Madrid flies from terminal 3 at CDG (the "LCC warehouse"). Reaching it from terminal 1 where you will arrive on LH entails taking shuttle bus line 1 from exit 22 to the RER train station and then walking 300 meters to terminal 3.

3) You will not be able to use the LH lounge on arrival as it is airside and you will need to leave the airside area to go through immigration and claim your luggage (don't know about RCC location but assume it's similar).

Hope this helps and that you have left at least 3 hours between flights.

Andre