Charlotte,
The Information Commissioners Office recently published guidance on using Cloud Computing services. It won't answer all of your questions but it has very useful guidance on things to watch out for regarding contracts, security and location of data.
There is a link to the guidance on the following page: http://www.ico.gov.uk/news/latest_news/2012/cloud-on-the-horizon-for-data-handling-outsourcing-27092012.aspx
Regards,
Eldin.
Director, Rammell Consulting Ltd.
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