1. At what height should I install the baseboards for carpet and should I install the shoe molding after or before the carpet. I have heard both 1/4 and 1/2 inch for the baseboard height. I plan to have a plush or berber carpet installed.

2. I am finishing a built-in bar/storage unit of 3/4 oak. For the transition from the 1/2 drywall to the 3/4 oak I plan to install a stop and chair rail molding. Yes I will install the chair rail molding vertical.
My question is should molding run to the floor OR stop above the baseboard. I plan to either miter the baseboard if molding runs to the floor OR miter the char rail modling if it stops above the baseboard. Both ways look ok, I was curiuos as to which way would be considered the "correct" way of doing it.

Thanks in advance...