1. Yes, I think he is referring to extra miles compared to camping at Outpost or Trail Camp. Without a doubt, you shave a few miles off the total 22-mile roundtrip by camping at LPL rather than at the portal.
2. Yes, you show up at the permit office before 10 a.m. to enter the lottery get an overnight permit to enter that very day. So, in July 2010, I showed up at 9 a.m. on a Friday, got a permit at 10 a.m, and was at Outpost Camp by 2 p.m. that same day, where I spent the night. I got lucky -- it is much easier to score such a permit in October rather than July!
Good luck, and look forward to the trip report. We are currently in a sketchy time, weatherwise, so you may want to read Doug Sr.'s post about proper preparation on the other board. You need to be prepared for thunderstorms and snow at the higher elevations, and prepared to turn around. (It looks like the weather may get better over the next few days, but check Dennis Mattinson's forecast and talk to the folks at the Portal store...).
