Hello! You ask excellent questions! I will answer the last two, because these are the questions I know the most about. Hopefully one of the solar physicists will answer your first two questions.
How far can it reach?
The region of space affected by the Sun's magnetic field and the solar wind is called the heliosphere. The boundary between the heliosphere and interstellar space is called the heliopause. My colleagues at the University of Iowa built an instrument to measure radio and plasma waves for the Voyager 1 spacecraft, which was launched 40 years ago in 1977. Using this instrument (it still works!!!), they observed a special kind of plasma wave, called an electron plasma oscillation that indicated Voyager had reached the heliopause in 2012. Voyager 1 was located at a distance of about 121 AU (AU=Astronomical Unit, or 93 million miles, the distance between the Earth and the Sun). At 121 times further away than the distance between the Earth and the Sun, sunlight takes more than 16 hours to reach Voyager 1. That's really, really, really far away. You can listen to what the signals picked up by Voyager 1 at the heliopause sound like here -
http://www-pw.physics.uio...nterstellar_epo.html How does it interact with the Earth's magnetic field or does only plasma from the the solar wind interact?
Both the Sun's magnetic field and the solar wind plasma interact with Earth's magnetic field (the magnetosphere). Both the strength and direction of the solar wind magnetic field are very important. When the solar wind magnetic field points in the opposite direction to the Earth's magnetic field, a process called magnetic reconnection will happen on the day side of the Earth. Magnetic reconnection allows solar wind plasma to enter the magnetosphere, and is an important way that energy is transferred between the solar wind and magnetosphere. When the solar wind magnetic field points southward, or opposite to the Earth's northward magnetic field, for an hour or two, and then suddenly turns northward, people at high latitudes might be able to see beautiful displays of aurora. If the solar wind magnetic field points southward for several hours, and there are higher than normal solar wind speeds and higher than normal solar wind plasma densities, there could be a geomagnetic storm. One of the satellite missions I work on is called Magnetospheric Multiscale (MMS) and its main goal is to study magnetic reconnection. Another satellite mission I work on is called the Van Allen Probes, and its main goal is to study what happens to the radiation belts during geomagnetic storms. When scientists try to understand what they see in MMS and Van Allen Probes data, they will often look at what the solar wind magnetic field is doing to place their observations in the proper space weather context.