This forum and its users have been very helpful to me as newbie learning about Bitcoins.  I have been mulling over an idea of making it possible for anyone to purchase Bitcoins at a retail location . 

The idea resolves around buying non refundable credit from a retail store. Something like Money Pak or something similar.  Unlike money Pak there would be no service charge for the purchase. Once the purchase was complete then you would go online with the code to complete your bitcoin purchases.

Questions:

1. Is there anybody or company offering the ability to purchase Bitcoin via cash transactions at  a retail store?
2. What are the advantages for offering this services?
3. What are the disadvantages for offering a service like this?
4. What would be a fair fee for offering such a services. At the present moment the service provider is charging 2% to 4% per transaction. So any fee charged would have to be on top of that fee.
5. Is it better to have your own Bitcoin client on your server or purchase bit coin as need from exchanges like Mtgox for security reasons.