I am tasked to investigate the differences between LVM and LVM2. I am
new to LVM so it would be greatly appreciated if someone can explain or
point me to the right direction for the following questions:

Start here http://www.tldp.org/HOWTO/LVM-HOWTO/index.html

Not directly on point, but think long and hard about using LVM. There are now very few advantages to using it and there are a lot of reasons not to use it. The only time I can see a real advantage to it is when one is using very large (10GB+) files that have to be stored in contiguous space in a non raid environment. Other than that you can do virtually everything else without it. Remember when LVM fails (and everything fails sooner or later) it is just another layer of complexity added to the repair (ie it can be a nightmare to recover).