re step 2 - you could hide the acceptance checkbox and submit button with javscript or css and only show it once the terms has been clicked, you might need to make the terms in a modal box or pop-up though otherwise the page will have to reload when they go back and the button and checkbox would be hidden again :)

step 3 - in my version of 1.5 when you check the shopping cart contents the thumbnail is already there. Are you sure the images that should be shown actually exist?