You're right on point 1, MS threw me a curve ball again (sigh). The <providers> elements weren't in the "general" web.config in the betas, but come the final version (after the book had been written), this element was added, thus helpfully breaking my example. You are right, you don't need it now.
I could pull my hair out sometimes. I actually did some documentation for MS on the healthmonitoring stuff, so I was way ahead of the curve on this one - unfortunately too far as it turned out.
And point 2, yes it's Event Viewer not Event Log.