0.Finding a cool hacker co-founder will be a bit difficult too. We are all out here ;) But if you have one in mind, Go ahead. You don't need the YC money. Living in India is so much more cheaper, it's not like we need Health Insurance or anything. But you have to fly back to market it, Second round funding etc.

1.Very dicey.

2.No one really understands us, I have an appointment with the lawyer at the International Center at my University. I will post to news.yc about what I find out. Meanwhile, you can try to talk to your Univ. lawyers too.

3.Death.