No need to be sorry ;) Assuming you're referring to the ClassiPress theme:
1) Outside of the advanced search functionality visible on the category view sidebar (
as shown on the demo site here), it would require customization on your part if you wanted to add location as a main page search criteria. On a related note, there is a
map based plugin available in the AppThemes marketplace which gives a visual location indicator on the homepage though.
2) The featured ad option isn't part of the package but if you are charging for featured ads, you can set the pricing and it will add an additional checkbox to the listing form so the user can choose to select it to add to their listing at the time they create it.
3) Technically it would be possible, however it would require customization on your part, so you'll need coding knowledge to make such changes as it's not a setting within the theme. AppThemes does not offer customization services, however we do have a
certified partners page where you can find developers for hire. Thanks.