I tend to think that using around the middle of the zoom range of any projector is best. You get to far to either extreme and you can start to have some lens issues which can degrade the image. In a perfect world with perfect lens design, you would never have this, but in the real world, it is something that concerns me a bit.
Keep in mind a 'zoom' lens is always zoomed to something. You either zoom all the way in, or you zoom all the way out, or you zoom somewhere in between. So, you can't ask if it is better or worse to use zoom - because you will always have to use it when you have a zoom lens. My recommendation is that you simply try to avoid extremes.
For lens shift, the neutral position of the lens is near the center of the screen, but you have a lot of room with that projector and on the high/low end you can typically have the projector several inches above the top of the screen. That's center of lens to top of the screen - perhaps 6 inches or so, without needing to tilt the projector at all.
You're confusing me a bit on the throw range thing... With a 100" diagonal (which is small from 13' viewing) you can put the projector anywhere from 10 to 20 feet from the screen. That's the whole point of the zoom lens. Please understand, that I think DLP produces a better image overall than LCD when it comes to black levels and shadow detail, but the cheaper DLP projectors have pretty strict setups required to get the best out of them. That is, if you can place the projector about 18" above a 100" diagonal screen and have it so the lens is 12 to 15.5 feet from the screen, than a projector like the Mits. HD1000 or the Optoma HD70 will work from about 11.5 to 14 feet.
As far as screens go... I have only seen sparkling in total junk screens. A decent screen, like the Carada Brilliant White screen will deliver 1.4 gain without causing negative image quality issues. Don't go cheap here and you won't have issues.
FYI: Had you asked on Projector Central's forums you would have gotten a pretty good answer I expect - I hear that AV_Integrated guy knows his stuff.