I experienced both of these issues. To get the download to resolve, I had to start over once, and then wait all night (game closed) while it downloaded at 3KB/S. Not sure why, but eventually it did finish. I didn't have any previous Allods launchers installed before that.
My characters also had issues merging, even though I requested the transfer via in-game option.
This thread fixed it. Although the game said I had 0 characters in the Server Selection screen, when I actually went and chose the server my characters were all there.
If your'e still having issues though, it looks like there's a chance you might be one of those 1%
who are still having log-in issues. Sorry about your troubles, guys. I know how it feels.