I would like to move the transport controls to the area above the markers. Can they be moved? I find the video preview could use the transport area to make a larger preview window, but then I don't have access to the controls.
You cannot move the transport controls in relation to the timeline. However, I find that I rarely use these because I am so comfortable with the keyboard commands. Check 'em out.
Options / Customize toolbar. You can add the transport icons to the toolbar at the top of the screen. I like doing this, but for other reasons than you mention. For me the main reason is that most effects dialog windows cover the transport controls in the middle of the screen. Often i want to use them while the dialog window is still open.
There I suspect you have someone who has been advised, for legal reasons, not to admit anything. Even taking down his infringing websites might suggest admission of fault. The video camera: probably he was hoping you'd say something implying informal permission. Must be betting that you won't go to court. With no documents supporting his position your interested parties should be formidable. Clearly you've been rather kind about this and I'm surprised that he didn't accept your originally offered easy way out.
Serena