First off, if you're running Joomla 1.7, I'd highly, highly recommend upgrading to Joomla 2.5.x. There are many security and bug-fixes that you really should not launch a site without. Additionally, upgrading should be a pretty simple 1-click affair with Joomla's built-in auto-updater. With that said, JFBConnect should run fine with Joomla 1.7, but if you run into issues, that would be one of my first areas of concern.
As to your specific questions:
1) No, we have no fee for user count, timelimit, or anything else. When you purchase a subscription (6 or 12 months) you're entitled to new releases, support, full documentation, and access to our auto-configuration tool for that period. After your subscription ends, you can continue using JFBConnect and it should operate just as it did before the subscription expired, but you will lose access to new updates, support, and the auto-configuration tool.
2) JFBConnect takes great care to respect Facebook's Terms of Service and the user's privacy settings. There is no information we automatically import about a user without their explicit permission, if that setting is marked as 'private'. You shouldn't have any Privacy concerns, but obviously, every website is different, so you'll need to evaluate that fully on your own.
3) If your site hasn't been launched yet, it should be pretty easy to switch. We have methods to automatically add the comment box to all articles and a module and easy-tag {JFBCComments} which you can use to add the comment box to other areas of your site.
Hope that helps explain, but if you need more info, just let us know!
Thanks,
Alex