1 and 3. When Steve Jobs quoted Picasso, he meant that anybody can just sort of copy and immitate something, but if you can manage to steal it so that what you have IS the "original", then you've done something more successful. He meant that Apple STOLE the GUI from Xerox which made Apple better than Microsoft- Microsoft only managed to half-heartedly COPY the idea from Apple. In a way, Jobs was right since Apple is credited with creating GUI by most people. However, the courts didn't agree with Jobs- courts ruled that both Apple and Microsoft had copied and therefore neither were very great... : (
2. Basically, Apple sued Microsoft for copyright infrigement when Microsoft copied their main chance at staying in the computer "race", GUI. What the courts found, however, was that Apple couldn't sue since they had actually taken the idea of Xerox. (http://en.wikipedia.org/wiki/Apple_Computer,_Inc._v._Microsoft_Corporation)
4. Windows currently dominates the market with 93%, and Mac is lagging behind with about 6% according to http://marketshare.hitslink.com/operating-system-market-share.aspx?qprid=8 in August of 2009.

This is the very fuzzy version of the pie chart on the website.

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