Q1: The crown molding we purchased has a very decorative pattern. It is very similar to the third molding shown on this site:
Q2: We have bull-nosed outside corners. This means there will be a small gap at the bottom where the molding meets in these corners. Would it be best to cut small quarter round plugs out of 1" thick wood that would slip up into these gaps? Or does it work just as well to fill the gap with a little caulk, smooth it out, and let it go at that?