Hey Cameron--
I'm afraid I'm fairly new myself and can't help with the "carbonation drop" question as I've never heard of those before...but what I can tell you is that for the carbonation of the beer, you simply need a sugar to get the yeast and beer going.
Most folks here in the states either use corn sugar (sucrose...cheapest option, easy to use and works well), however for more English/Euro style beers you'll want to use light malt (maltose) instead, as it will add a little more charecter to the brew and seems to be a little more subtle on the carbonation, at least in my experience.
In regards to bottle batching, I strongly prefer to just mix in the priming sugar in a large batch prior to bottling. While it's true that you're going to run a slightly higher risk of contamination, as long as your area is clean and you're vigliant about santization, you should be perfectly fine. Not only will mixing in bucket/carboy prior to bottling offer you a much more standardized product, but it also greatly reduces the risk of you having your bottles explode on you...which, for those of us with significant others who may not share the same passion we do for home brew, is a pretty important factor to take into consideration.
To your last question about drunks who aren't going to know the difference, I learned this trick from a friend...go out and get a case of cheap bottled lager beer at room temp and soak until labels come off. Remove labels, dry, and pop the top. Then re-cap with your capper and homebrew caps. Then on the top write "LL" for "loser lager" (or "light lager", as you'll tell them).
They don't want rich IBA's or delicious browns anyway, just give them what they want (cheap, light, thin lagers) and they'll rave about what a great brewer you are. Better yet, you're not wasting your quality home brew on people who A) probably don't like it anyway, and B) don't appreciate your hard work on the product.
Some would say that's close to beer fraud, but for drunks who don't know the difference, don't care, and just want a cheap, thin lager anyway, I say give it to them!