Matt,
Use as many colours as you need to get to your target depth. Sink rate is basically 5' per colour at about 1.5 mph. Leadcore is very speed sensitive. It rises dramatically with speed.
As for knots they are very simple once someone shows you. Here is youtube video of the knot I use. It is strong and passes through the eyes real easy.
http://www.youtube.com/watch?v=VJiQ7Pi8wCsYou can use this to attach the braid backing to, but because the braid is limp, it is really hard to insert into the leadcore. If you "paint" the braid with nailpolish it makes it stiffer and is easier to work with, or just pull back the dacron remove a piece of the lead and use a uni to uni knot.
see
www.animatedknots.com for a uni to uni knot.
Scott