I need a fill-able character sheet where you can up the level of the skill cap (like add fantastic to it if the game ever reaches this point).Has anyone put such a thing together?

If you ever get a skill that high, you're not going to be fuzzy about which one it is, just put it on the first line of the powers section; which probably isn't a bad place to list a skill that high.

Only concern is legality of distributing,

Ah, that reminds me of the good old days of Lorraine Williams from TSR trying to copyright terms like hit points, armor class and saving throw to try to sue people for posting their home brewed AD&D modules on the fledgling internet.  Worst case scenario, someone from Evil Hat sees it and tells you to stop.  If you're waiting to get official permission, I seriously doubt the legal department would allow it.

If you are using spreadsheet it is fairly easy to create nested IFs to handle the cases.

I'm a big fan of lookup tables myself.  Makes it easier for me to wade back into a project after a few months and understand what I did.

I've been waiting to get my books for two weeks, and now that they currently resonate in my hot little hands, I'm planning on running a game!

The catch - I've never really done this before.

I'm anticipating running into a lot of resistance from the FATE system, and i'm ready to roll with that, but what I need all of your advice with, is how DO you run a game?

Don't over prepare, rules heavy games tend to encourage this behavior because everything needs stats, dynamic encounter areas, ect.  Give the bad guys a plan and break it up into several separate stages.  For example: 1) Big Evil Bad Guy's minions steal a magic mcguffin for the evil ritual.  2) BEBG makes a deal with some critters for protection during said ritual. 3) BEBG prepares his sacrificial victims. 4) BEBG gets everything in place and casts the ritual.  Then look at each stage and see what the BEBG would do if one of those stages fails, just flesh out a bit of a backup plan.  At that point, just draw the players into the plot and let them cause whatever chaos they're going to.  You know what the opposition will do if a part of the plan fails, if the players don't stop them, they just carry on.  No matter what avenue the players pursue, let them have their fun and it to draw them closer to the plan.  In the example above, they might find out from one of the minions that the boss is getting some heavy hitters to watch him over the next couple of days.  If the players stop the BEBG from hiring the critters, he goes to plan B, if not; well, at least the players should have a little time to research and prepare to fight whatever they are.  No matter what happens, they know they tried and either way, they should feel better about the outcome because of advance knowledge or knowing they are facing the backup team.

About the only set piece fight I'd bother putting more than a couple of minutes work into would be the initial scene and the finale, where the players show up at the last minute to stop the ritual and save the day.  Too much work on other scenes is likely to be wasted as players find an alternate way through a particular encounter or a way to skip it entirely.  Avoid investing too much of your time in these middle scenes and you'll reduce your temptation to railroad your players into them as a "reward" for your hard work.

. Modern Birdshot/Buckshot are also steel btw

Birdshot, yes, buckshot, no; it's due to a concern about bottom feeding waterfowl ingesting the shot in wetlands.  The largest birdshot, made larger than any lead birdshot was in the past, to give the pellets more range due to the lower density of steel; is just under #4 buckshot in size but at typical close quarters ranges, that would inflict serious damage on just about anything.  Not too many critters can shrug off 20+ simultaneous .22 caliber pistol hits and having steel rounds available is just a bonus in a world populated by fae critters and on the chance that the cops do get involved, you don't have to worry about explaining why you're using hollow slugs filled with some goo you cooked up in your kitchen to "kill monsters".   

Debating on creating mine from the books....  Not sure how much time Id have to do the project though.  

How sturdy is the play-dough after drying?  Will it hold up to a 4ft drop?

I only used Play-Doh as a mold for casting in plaster (which I normally use for Hirst Arts dungeon stuff http://www.hirstarts.com/).  The plaster I use is Hydrostone, it's a mix of Plaster of Paris and Portland Cement, which gives it a hard surface and a compressive strength greater than Quickcrete.  The cement also gives it a fair amount of water resistance once dry so it won't soak up paint like a sponge.   I buy the stuff in 50 pound bags from a local casting supply place for about 50 cents a pound.

Regular Plaster of Paris would also work, it's pretty tough once completely dry and small pieces like fate chips should easily survive drops from table height.  The really good thing about plaster is how cheap it is, I cast a complete set of 24 runes and a couple of blank spares for lost pieces for roughly $1, including paint. 

If you want simple, use Sculpey clay.  You work it like Play-Doh and dry it in the oven, it's got a bit of give to it so it should hold up well to drops.  I just went in the kitchen (the floor is fake wood tile over concrete) and did a test with a piece about 2" x 1" x 1/3" I had from an earlier project; 5 drops from 6' and then I bounced it off the ceiling onto the floor, not a chip or crack.

a had a friend that in designing his character wanted his character to focus on tattoo's as Focus items. He didnt mention them as Enchanted 'items' as well, but i figured i'd take this moment to get a read on people's responses.

what do you think on the matter of Focus Tattoos and how it'd be handled?

I'd let you do it as an Item, but you wouldn't get any discount on the cost. 
To draw from my old Champions days, a disadvantage which isn't actually a disadvantage isn't worth any points.

Hellhound rolls a -1 against 4 (alertness against a value = to malks stealth) This results in a 2, or a failure of 2 to notice the malk. (Hellhound has good (+3) alertness.)

This would be a good time for the Hellhound to spend a Fate point to invoke it's Hellhound aspect to smell the Malk, giving it the +2 it needs to avoid the ambush.

GM screens are a remnant of a bygone era during which GMs could not trust their players and felt that they needed to hide behind something. We should move away from the distrust and into a time in which we can trust our players enough that we don't need to hide behind a screen.

I've got a player who reads normal printed text upside down from 4 feet away.  Just looking at my dice he'd be reading anything I've got in front of me without even meaning to.

There used to be several retailers with the GMs pack online, they all seem out at the moment.  Guess all those Dresden
RPGs hitting the shelves overwhelmed the market for the dice.

You could always use a sharpie to alter standard d6s.
http://www.fudgefactor.org/2001/12/01/babys_first_fudge_dice.html

My local game shop sells blank d6s for $0.19.

Either should hold you over until more Fudge Dice get stocked.