two things could be first go to your adsense account in ads section and delete or change the ad and second thing do it as TrafficCop said. Best of luck....
you have to transfer all the mails to new location because when you redirect the domain name then there is no need of hosting thats why its giving error.
first see your competitor sites that what keywords they are using and how they are using after that choose easy and less competitive with 3 words carry keywords and rank on them.
SMO does not helps to get SERP ranking its only for traffic. To boost your rank in SERP you have to do link building work like article, directory, bookmarking and many other technique you can use.
To submit site within directory consider two main things first one is site's load time and functioning properly, second thing is he is not using nofollow attributes on the links. :)