Apple HDD replacement program Q's

Hi guys, sorry if my questions are quite trivial but I'm afraid of messing something up that will require multiple Apple store trips and or money. Long story short I finally decided I'm going to take my iMac to my nearest Apple store to be serviced under the HDD replacement program announced last year.
But I have a few questions about the whole process and how to make sure everything goes as smooth as possible.
1- I undesrtand I have to have a Time Machine back up or HDD Clone. Some people here actually recommend not to use the latest Time Machine back up, But instead doing so from a HDD Clone. Why?
2- I know I'll be erasing the old Drive before taking the iMac for service, what's the best way to do this?
3- Do I need to take my after market bought RAM before taking the Computer for service?
4- For those of you who have already gotten their machines serviced: do they return it with Mountain Lion already installed on it?
5- After getting the machine what will it be the best option, Use Set Up Assistant or Migration Assistant, and will I get accest to that by booting up while holding
the "C" key?

1. My preference is to use a clone. I made a fresh clone; the tech replaced the hard drive; we booted from the clone and cloned the system back - very fast process and your machine will be in the exact same state as it was before.
2. Boot from your new clone (or your install disk) and use Disk Utility to erase your drive (you can't erase the drive you're booted from).
3. No.
4. I had mine done at my home (compliments of Applecare) and instructed the tech to use one of my clones. I've heard differing reports - some say ML was installed, others said that they got it back with the original system. If you have a clone, it does not matter what they install - simply boot from the clone when you get it back, erase the drive, and clone your system back.
5. If you use the clone method, no Migration Assistant is needed.
Edit: If you have a clone on an external drive, you simply plug in the drive, hold the Option key at boot up and choose the clone to boot from. From there, launch CarbonCopyCloner and clone your system back.

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