You can address the gift envelope however you please. You can use both first names if you're close friends; the only thing to avoid is "Mr. and Mrs. [his first name] Last Name."
You shouldn't be going all out until it's very abundantly clear that you're in a serious relationship and there will be some type of reciprocity in terms of the value...
No, you should only include the letter, photos, cards and photocopies. If you add anything else, the letter might be confiscated, and the prison inmate will never receive your letter.
Include just the first and last name of the person you're sending it to (no need to add Mr. or Mrs.)—make sure that the first and last name are capitalized,...
You could try tying the ribbon into a little bow and gluing it on. Or, you could wrap it around one corner of the envelope to create stripes and glue...
Popcorn, soft drinks, chips/crisps and candy/sweets are all suitable for a movie gift basket. Focus on making the basket look good if you can't spend a lot on the content.