Ok, i'll throw a ton of information here and hopefully some of it help:
-You want to avoid steeping in your full volume of water, this will promote extraction of tannins which will cause unpleasant of flavors as well as an unusual dryness on the tongue (like drinking wine). This also promotes unwanted silcia extraction from the hulls. Keep your ratio to 1 gal of water per 1lb of steeping grain at absolute most, 3/4 gal of water per 1 lb of steeping grain is better, 1/2 gal of water per 1lb of steeping grain is best.
-Someone above mentioned 2 gal boil off loss on a 5 gal batch, that sounds about right for that equipment profile.
-I can't tell you how much preboil you'll need because that is recipe and equipment specific. As someone else brought up, a recipe calculator will really help. Brewersfriend.com has every type of calculator you'll ever need, I even use their website for quick calc's in my production brewery when I'm away from my computer. If this helps, anytime I've done a 5 gal extract beer with steeping grains in a 10 gal kettle on a propane burner my preboil volume is usually around 7.25 gal to end up with about 5.25-5.5 gal in the kettle post boil depending on the recipe (including trub) to end up with around 5 gal going into the carboy/bucket to end up with about 4.75-4.9 gal of "finished beer" to be packaged. That final drinkable volume will depending on yeast flocculation rate, dry hopping if any, filtering if any, etc.
-Regardless of what your kit instructions say, save most (or all) of your extract for flame out. You'll have plenty of proteins from your steeping grains for the oils from the hops to bind and that style is minimally hopped anyway so you won't really have to worry about over utilization of hops by moving your extract to the end.
-Regardless of what your kit instructions say, skip the secondary. All this does is introduce unwanted o2 and will not do anything to clarify your beer further that simply leaving it on the yeast cake will not do. Also, keeping it on the yeast cake will allow additional "clean up" time for the yeast to uptake things like diacetyl for example.