I had a set up almost identical to this except I had the Picasso II and A2320 in a 2000. I was told to use trial and error to figure out the correct one. It wont hurt if you get the wrong one.
1. From memory, the bottom one is the input, so connect your A2320's output to there. Don't quote me on this though. My Picasso had the connector marked so I never committed which was which to memory.
2. I used a standard 15-pin VGA cable on mine and it worked fine.
3. I might. I have an extraordinarily large amount of crap in storage. So much so I lose things. As chance would have it, I'm going through it all this weekend. If the manual turns up I'll scan and post it.
4. You don't need another monitor. Picasso will just switch to the required mode. Since you're using an A2320, the native Amiga mode will be displayed just fine.
Another thing with the Picasso II, you can't have more than 6MB or 7MB [size=10](Depending on whether you have the 1MB or 2MB version)[/size] fast RAM or it wont work. Or more accurately, you have to set Picasso to work in segmented mode, which I'm told is slower.
maps its memory directly into the Zorro II address space - speeds up manipulation of graphics memory but limits the amount of fast RAM to 6 MB -
Amiga Hardware Database[/i][/quote]