Taxes currently are being collected once every 30 days if I recall correctly. I don't think the timespan of the "first chapter will go much longer than six months.
The place where the child is taken is the "Holy City" where only members of the clergy live, but I like your idea. I also feel this particular event could be improved somehow.
But if you press on further, you can spend the night with him. At least it was coded that way, I don't know if there is a bug there or something was not made very clear.
Eventually I'll count them, but from my head I remember:
Kenrir the Hunter
Jenneth(not implemented yet)
Lodka, the Northern Prince
His three sisters(I forgot their names)
Lord Noyedas(not implemented yet)
And a few more.
1 - If I recall correctly it's an equation related to the number of people on your province + a bit of randomness + a few modifiers associated with the economy/tax treaties(I'm not sure that is implemented yet).
2 - There are only a few situations where you can recruit people outside of wartime in the game. Either one or two people from events or groups you manage to convince to join your "cause".
She can become your lover in the future.
Did you not get the message at the end of the event which says it was just a dream?
"You suddenly wake up, realizing it was just a dream. Still, the weirdness of it hangs on your mind through the rest of the day, as you perform the duties of court." should appear no matter what you do in this event.