1) Yes that's right.

2) Hard to say - the ratings for the brushless motors are a bit optimistic since they assume excellent cooling from the very high airflow present in a model plane. What power rating the motor is will be dictated by the speed rating since 'hobby' brushless motors with a similar kv specification tend to have similar power ratings. That's unless you introduce a belt into the system...or couple multiple motors on one shaft, but that's probably taking it too far for machining wood.

3) Clearly depends on the tool diameter, but I'm guessing you'll want about 12000rpm for oak? So look for a motor with around that speed rating. Ideally you don't want to have to use 'high voltage' (i.e. above 25V) ESCs as they're very expensive. So roughly 12000rpm/25v=480kv, or more if run from a lower voltage...

http://www.hobbyking.com/hobbyking/s...ner_Motor.html

Your next problem is the shaft diameter - the one above is only 6mm which makes it a bit useless unless you have a lathe to modify/make a collet chuck...

5) Easier to advise once the motor is chosen, but it's sensible to get a bigger one than rated to be sure. They're pretty cheap from the site I linked to above.