To answer the question:
How are we going to be able to trade Factoids - will they be on crypto exchanges?

Shape Shift has already announced their plan to integrate Factoids after May 15th when the software sale is complete.
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Shape shift is just a way to convert currencies not a trading exchange. What will determine the value of a factoid? The way I understand this is you want to keep the price of a entry credit to 1/10 of a penny and will create new factoids to keep this price at this level, so how will increased adoption increase the value of a factoid?
Thanks for your patience, I really want to understand this."

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Thanks for the note. I'm happy to talk through the details. You make a good point, Shape Shift is a good way of convert tokens but doesn't itself have an order book and thus isn't an oracle for a price. I expect a number of exchanges will make the necessary integration with Factom to support the trading of Factoids. I'll wait to name, names until they much public statements.

The Federated Servers will determine the conversion rate of Factoids to Entry Credits, however yes the number that we putting out there as an example is a tenth of a penny for entries.

To be clear there will not be any "new Factoids" created for the purpose of maintaining or locking this price or ratio. The new Factoids that are created in the system go to the elected Federated Servers for the purpose of rewarding them for auditing and publishing of the hashes.

So think of it this way the Factoids are traded on the market at a dynamic price. The Federated Servers will react to this price change by increasing or decreasing the conversion rate of Factoids to Entry credits between the upper band of being cheap enough to attract users, but expensive enough to prevent spam.