Dear anon, the most complete reference might be Bourbaki's Algèbre, Chapter V.

**For question 1**, I suggest Bourbaki's Algèbre, Chapter V, §10, 4. Descente galoisienne, Corollaire . There the Master proves the more general result that the canonical morphism
$$K\otimes_{k} K\to K^G: x\otimes y\mapsto (x \sigma (y))_{\sigma \in G} $$
is injective for any Galois extension $K/k$, finite *or infinite*, with Galois group $G$, and bijective if the extension is finite.

**Question 3** is trivial from Bourbaki's point of view since for Him the definition of $K/k$ being a separable extension is that for any field extensions $L/k$, the $k$-algebra $K\otimes _{k} L$ has no nilpotents (neither $K$ nor $L$ is assumed finite-dimensional over $k$). As a concession to less enlightened mortals, He proves in §15, Exemple 3, that if the extension $K/k$ is algebraic ( for example finite-dimensional) this notion coincides with the one that you and I are familiar with: the minimal polynomial of any element in $K$ has simple roots .

**For question 2**, I cannot give you a reference which exactly answers your question. However a purely inseparable extension is a particular case of a primary extension and these are considered at the end of our reference, in §17,2. Produit d'extensions . The *Corollaire* there shows that the nilpotent radical $P$ of $K\otimes_{k} K$ is prime and since this algebra is finite-dimensional, it is local of dimension zero with unique prime ideal $P$ . We still must prove that its length is $[K:k]$. This is equivalent to the claim that the $K$-algebra $ (K\otimes_{k} K) /P $ is $K$ . This follows from the existence of the product map $K\otimes K \to K$ sending $x\otimes y$ to $xy$.The kernel of this map is exactly the unique prime ideal $P$ of $K\otimes K$ . (By the way, an excellent reference for the notion of "length" is Appendix A to Fulton's book *Intersection Theory* ; Example A.1.1 page 407 is relevant to the above discussion)

**PS** If you are not familiar with exotic languages, you will be relieved to know that this volume of Bourbaki exists in English translation.

Commutative algebra I, pgs. 195-6. They require only one of $K/k$, $L/k$ to be separable. – Adeel Dec 10 '10 at 12:51