I don't install railings for a living so I'll tell you I know but there may be a better way. You could post your question on JLC online forum
http://forums.jlconline.com/forums/forumdisplay.php?f=7
1) Easements..............don't know what that means or what you're talking about.
2) Rail bolts are best. That puttied zig-zag line you saw was from a stair tool that shoots that fastener into the joint. It's used it picture frames as well.
3) Baluster spacing should be even and the same for every tread, You can't alternate 3 then 2. Code rquirement is balusters must 4" oc OR LESS. Spacing is determined by the newel posts, not stair nosings. You measure the distance between the newels, not stairs treads or nosings. Spacing should be even and doesn't matter how they land on the tread.
Example: It's exactly 10' between you two newels (the center of the newel, not the side) 10 'x 12"=120"divided by 4" =30 balusters 4" oc - 2 ( which are the newels) =28 divided by # of treads =how many balusters per tread. Buluster location is determined on the RAILING, not the tread but you need to take into account how the balusters will fall on the treads.
Drill holes with new brad point drill bit, not spade bit. Glue into position with yellow glue and brad nail through the side of the railing into the top of baluster