Hi Travis,
I will have to check in on the adjustment buffer. We have heard some concerns on data that wasn't coincident with parcels and shouldn't be furthermore. In testing, we didn't see any weird behavior where unintended vertices were moved however.
To answer your first question, the vectors they are talking about are not like vector data but more like actual vectors that you would learn about in math and science school. They have a "bearing and magnitude"--that is, a direction and a distance. That said, when you build your fabric and associate other layers to it, the data gets time stamped. Whenever you do a parcel edit and move a vertex, that vertex has a displacement vector associated with it (storing the bearing and distance). So that distance and direction is applied to the associated vertex in the associated feature class.