Squidoo is similar to most blogging sites, with their own unique spin on it. You write articles and post them on Squidoo, and then you can link back to your site (backlinks help with SEO). If you've got the time and energy, you can post lots of articles and become an authority in Squidoo on your subject, and gets people to link to you. But if you've got that time and energy, it's better to post the content to YOUR website, and have everyone link to your website rather than Squidoo.
Yes. Create several Squidoo pages with each one focussing on a specific topic related to your site. Link the pages together and to your site. For more info about Squidoo, visit http://best.website.ever.com
Yes, backlinks to your site definitely help with SEO, especially from established sites like Squidoo.
Making a lens on squidoo is like creating a personal blog. It helps a lot! This is the best way to do it