I'm not sure, the moderators seem not to react quickly to flagging, and some moderators locked their comments so we can't report spam directly.
Moderators cannot see flagged content, or rather they cannot see it is flagged. All that is flagged goes directly to Carlie (probably on a list), with all needed info.
Therefor is flagging comments something that needs to be done some ten times to be noticed, and it will take some time before it is deleted, due to only admins being able to see the list.
So for the questions:
-Most likely. The is stored somewhere in the database for the admins to see.
-Again, most likely. If there are one offender popping up a lot, it will be taken care of, though, if it needs to be taken care of quickly, it is easier to report directly to a mod with links to the offender and evidence of crime.
-5 to 10 times, I think. I managed to get something deleted with about 7 flags.
-Yes, but again, it needs more than one flag to be taken care of, and there is a rather limited amount of people checking it, as the moderators cannot access it.
-It does not make it bigger, no. It goes to a database, as I know of, at least, and will be stored there.
-Only admins, and possibly the staff. The moderators are unable to see flagged comments, and thus cannot act upon it.
Furthermore, may I suggest to the main staff of Armor Games that more moderators be employed? The last time I checked, there weren't that many active moderators.
It is because of the summer vacation, and before that, the exams. Most of the mods are in the end, or middle of their education, which means plenty of exams and papers to write, so the real life is taking time from moderating. It will probably be better.