Hive Leader 2: Fall of the Empire

1)

function kool1()
while 1 do
sleep(1)
if GetObjectOwner('elftown') == PLAYER_1 then
TransformTown('elftown', 1)
break -- this thing breaks the while loop
end
end
end
startThread(kool1)

The problem with the original code is that you gave a function and another variable the same name.
3) In my humble opinion.