1) Aluminum is fine. Lots of cooking items made with it.
2) I'd get whichever was in the best shape.
3) Unless you have a dedicated high amp feed, forget electric. Pellets and A-Maz-N tray would work. If you go propane, get a thermostatically controlled unit with safety shut off. Charcoal is doable but needs something like a Bbq Guru to be set and forget.
4) Spray in foam usually doesn't handle the higher temps of a smoker. 2" rock wool is fine.
If you plan to sell, you may have to get the smoker certified by local BOH. I would find out first before sinking money into something that may get shot down.
Good luck!