1. The application specifies 250 CHARACTERS, not words. A character is a single key stroke (like a comma or the letter 'b'). This will end up being approximately 40-50 words. Don't get them confused - they are not essays. But they should still be coherent and well written.
3. What would you report if not your true salary and bonus?? Remember that when you submit the app you sign a verification agreement - at any given point, HBS can ask you to provide proof of ANYTHING you put on your application. If you lie, they can nullify your application, take away your acceptance (if you get in), or even terminate your status as a student if you end up going there. Also, it probably doesn't matter that much - if you don't get into HBS, I'm going to trust that it was NOT your salary that got in the way.
My blog: http://www.theapplicationist.blogspot.com/
My application status: 2012-profiles-w-admit-dings-results-no-discussion-116595.html#p983273