Actually in experimenting a bit more, I found out that my first guess as to the problem was incorrect. (Not unusual, unfortunately.

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If you try to run the attached in ver 2.0 (using Vista), I think you'll find it works OK - at least until you get to the display of the single digits which I have no idea as to how to fix. I really don't think there is a clean way to display a number without the decimal point.
Your first problem seemed to be related to a known bug - namely that when you use the "ask user for a string", the question sometimes repeats. I don't remember the reason but I believe the probem is documented somewhere.
Adding the first wait statement seemed to clear up everything.
Re 2.0 vs. 2.2 - I had the same problem initially in 2.0 so I doubt it's just a version problem. Personally, I don't use 2.2 (it uses too much memory for the improvements you get) so I really can't say for sure.
Re using local variables - Since that relates to encapsulation, which is poorly (if at all) supported in Alice 2.0, I suspect that is the reason Dick didn't include the subject in his tutorials. He has done some good postings in this forum and other places on the subject - I suggest you do a Google search on "Baldwin" and "encapsulation" if you're really interested.