For Question #1: Number of Instances
Amazon charges based on hours of usage, not based on number of instances you are running. Check this Amazon AWS Free tier details.
They have clearly mentioned that the free tier includes:
750 hours of Amazon EC2 Linux/UNIX or RHEL or SLES Micro Instance usage (613 MB of memory and 32-bit and 64-bit platform support) – enough hours to run continuously each month*
750 hours of Amazon EC2 Microsoft Windows Server‡ Micro Instance usage (613 MB of memory and 32-bit and 64-bit platform support) – enough hours to run continuously each month*
750 hours of an Elastic Load Balancer plus 15 GB data processing*
30 GB of Amazon Elastic Block Storage, plus 2 million I/Os and 1 GB of snapshot storage
For Question #2: Elastic IP addresses
Allocating and using one Elastic IP addresses per instance is basically free, except if the Elastic IP address is not currently associated with an instance, see section Elastic IP Addresses on page Amazon EC2 Pricing:
$0.00 for one Elastic IP address associated with a running instance
$0.005 per additional Elastic IP address associated with a running instance per hour on a pro rata basis
$0.005 per Elastic IP address not associated with a running instance per hour on a pro rata basis
$0.00 per Elastic IP address remap for the first 100 remaps per month
$0.10 per Elastic IP address remap for additional remaps over 100 per month