drugcrazed

good to hear that you are both singing in the tradition and doing some of your own. Your (2) is what I'm most interested in. The folk tradition does not expect you to do covers but to make the song your own in some way. here is a little check list that might help
- sing it as fast as you can, then really slowly, then pick a speed where all the words can be understood
- sing it as high, then low as you can - where is your voice best
- try putting it in a different time signature eg 3/4 rather than 4/4.
- put a major key into a minor and try it
- add a repeated line or a chorus

You may end up going back to the original version but you might like some of your own variations too.

I think the best advice is to get to folk clubs and sessions and try your songs out. You will get fairly instant feedback about what works well and what not so. Don't do (3) at folk clubs or sessions. Most folkies have a good understanding of song meanings.
FloraG.