Need advice for making my own wood type

I am wondering if anyone has made their own own woodblocks for letterpress printing. I will be making them for use with a Kelsey 5x8, I was wondering if anyone knew answers to a few questions.

1. What dimensions should the wood blocks be?
2. What is the smallest size font achievable with wood?
3. What type of wood should be used?
4. Does the wood need any type of finish/oil applied to it?

I am just looking for any advice on this really, I appreciate the help!

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Here is some information that might be of help to you.