I don't have ready access to a running track or for that matter any great distance of level road to train on. In fact since I started trainning I have never run as much as a full mile on level ground. Does anyone have an idea if this is going to affect my pace on level ground?
i.e. the .5 mi. track where I do my timed runs is on the side of a hill with ~3-5% grade (my guestimation). I don't have to much of a problem keeping the time on my 1.5 mi. under 10:30 (granted, not by much). Am I going to run a slower or faster 1.5 on level ground or will it make a difference?
If I do need to put some level miles under my feet, how well does a treadmill work? (again, never been on one)

Well, you should have an advantage because every time you run it is like doing fartlek. The only thing you may have a hard time with is pacing. If you can keep your 7:00 pace despite the hills then good to go. If not, you need to evaluate yourself on flat ground once-in-a-while. A treadmil should be fine.

OK, I am going to display my EXTENSIVE running knowledge. What the heck is a fartlek? I have run across references to it in several posts, but so far all I've been able to figure out is that it is related to both hill running and sprints. (maybe I have something there-sprinting on hills?)

Okay, A fartlek run is pretty simple you normally start out with a warm-up of about a 1/2 mile to a mile and simply pick out a point ahead of you and sprint to it, for example a telephone pole,road sign or whatever and then bring it back down for a little bit and repeat ending the run with a cool-down.

Pretty much you just run with varying paces over varous terrain.