Lateralus wrote:1) Do my characters and equipment transfer over?
Yes, if you install and run the full version before you delete the lite one.
Lateralus wrote:2) Are there any 'hidden' costs associated with this game to get the FULL experience? Prolly not a deal-breaker either way but just curious.
No, there are no 'in-app' purchases for this game.
Lateralus wrote:3) What are the differences between the two versions? I ran around the 2nd floor for a long time without getting any treasure so I thought that might be one? Or was i just unlucky?
The only difference is the the full version allows you to go below level 2. I am not sure why you didn't find treasure, but you should be aware that treasure can only be found in 'rooms' and not 'halls' (unfortunately, the difference between 'rooms' and 'halls' is not always obvious).