Yes, white glue is fine.
Yes, latex paint is fine.
I used a product called Chemco Resin Dye. I mixed about 6 ounces of Envirotex Lite at a time and used 10 or 12 drops of dye in each batch.
Yes, for 1/4" finished thickness you'll definitely want two pours. Use a clean piece of cardboard as a squeegy to spread the resin.
If the resin has wicked where you don't want it, get a small brush and paint some white glue over the shiny resin in the wicked area. The white glue will dry to a clear but dull finish and the wicking will disappear.
Like Allan says, Envirotex ends up perfectly smooth like glass. The HO guys have figured out what to do. After the Envirotex is completely dry, you use a different product to make your waves. You can pick at the resin before it dries, but that is hit or miss at best. It always wants to lay down flat so you need to guess at how much to pick it and how cured it needs to be first.
There are two products I've seen used to make waves. If you want small ripples on a pond or currents in a stream, use Mod Podge Gloss. Use a fairly large brush (1/2" to 3/4") and stipple the Mod Podge on. It will also level itself a little as it dries, so make bigger waves than you'll want. If you want larger waves then the product to use is Liquitex Gloss Super Heavy Gel Medium. Stipple this on in the same way except it will essentially dry exactly as applied. I used it on a fairly large body of water where I wanted a wind-blown look. I wound up with rough water that looks good. I'll take a photo later and post it. The HO guys use Mod Podge Gloss for ponds and Liquitex Gloss Super Heavy for ocean waves.