Dear shadmar,
welcome to the Cafu forums!

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| 1. Can I apply my own HLSL shaders ? (Never tried writing GLSL) ? |
Currently not. This requires a DirectX renderer to be implemented first. We've applied for becoming a mentor organization at the
GSoC 2010, and hope that we get accepted and a student picks a DirectX 11 renderer as his/hers favorite project, see our GSoC 2010
projects list for details.
Should we not get accepted or if nobody wants to implement a DX11 renderer, we'll eventually do it ourselves, but it might take longer. Of course it would be wonderful if you wrote it - I'd be happy to assist and help you in any way I can.
Until then, the only alternative is ARB vertex and fragment program shaders and/or NVidia Cg shaders (very similar to GLSL).
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| 2. In 3drad my biggest issue is LOD, is it possible to create an entire planet using the SOAR method in Cafu? (i'm kind of looking for seamless infinte terrains and a nice space to planet surface transition, or not doable at all ? |
Not out of the box. I'm quite confident that the SOAR algorithm can also deal with vertices that form an arbitrary mesh (in fact, the implementation in Cafu should easily be able to deal with arbitrary shapes like spheres), but either way it requires custom coding. As before, you're very much welcome to implement it.
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| 3. Can I instance meshes and clone imposters of skinmeshes runtime on events/triggers or similar scripted method. |
I'm not quite sure if I fully understand the question, but yes, something like that currently happens when a human player is killed during a DeathMach game: The player character is replaced with a new entity the represents the dead body.