1 and 2 are contradictory. For 1 just add the Location compare cliff level validator to the effect performed directly by the weapon. For 2 the only method I can think of is the Passive flag is applied by a buff but disabled if an aquire simulation ability.
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Did you use the right effect? It's the Weapon - Effect one in your weapons fields.
Go to that and add the validator, I don't think "Location compare cliff level" is the right one btw.
EDIT: It should be "Location crosses cliff", dunno how it is called exactly in english since I normally use the german editor
EDIT 2: Sorry, I thought you needed a validator that indicates the crossing of a cliff >.< "Location compare cliff level" is the right one then :P
I guess the values are "Equal to" and as a cliff level height value use 0, 1 or 2. You can't adjust it to the current cliff level of some unit, though.