Please refrain from double posting in the future and welcome to NLG.
To answer your questions.
You have an S2000 running an S+ kit variant of Wild Cherry, you will need to change the Reel chip in order to change payback percentages. You can buy S2000 glass kits to change your machine to other game themes. They show up for sale all the time on e-bay and on the classified section here. You can also post a WTB if you are looking for a specific theme. To change the game, you will need at least the top glass, belly glass, reel strips and the Base chip (and sound simm if your theme requires it). If you get an S2000 native theme, you can change percentages as the base chips for the S2000 contain several to choose from.
It's been a while since I changed denominations on an S2000, but I'm pretty sure that option is on the key chip menu. If it is so, you will need a key chip in order to unlock the menu and change the denomination.
To have the machine accept tickets it prints, you will need to install a TITO board in your machine. Search for BettorTito (or go the the classified section, should be one of the first "stickied" posts).
The arm is locked by default, it only unlocks when you press the "Bet One' button. Then you should hear a solenoid click and the handle should be free to pull. If it doesn't, then you have a fault in the solenoid (or it's uplugged). The solenoid locks and unlocks a pin which controls the arm. If your machine had coin-in, dropping a coin would unlock the handle, since your machine does not have coin-in, the bet one button will do the same.