Allow a couple of months for this process.
It took me 3 days...I faxed said forms to CAA and the FAA and 3 days later the letter from the FAA arrived through my door ! Couldn't believe it, and well done to the FAA. Remember even if you don't have the letter of authentication in your hand when you leave for the states, you can always pick it up at the nominated FSDO. Give them a call first.
Not quite true. According to the news article you've linked to, you will need a Visa if you don't have a machine-readable passport
Not quite true

According to the news this morning anyhow. You will need a Biometric passport if issued after this date, if not you will have to have a visa. All UK passports have been machine readable for the past 10 years or so, now the yanks want a finger print to prove who you are.....
Not quite sure how this increases security, what with identity theft and all that....no doubt people who have the inclination will find a way around it....
EA