Steve,
>1. At what directory level should I store my middle layer subclasses?
Most developers create their own "common" directory as a peer to the Framework's common directory.
<<2. If I use the Quick Start utility to create a project, do I need to modify the Generic project so that it creates subclasses from my middle layer?>>
It depends on how you've done your subclassing...out-of-the-box, all of the application-level classes in the Generic project are subclassed directly from Framework classes. You could either created your own app-level classes, or redefine the existing app-level classes to be subclassed from your common classes.
Regards,
Kevin McNeish
Eight-Time .NET MVP
VFP and iOS Author, Speaker & Trainer
Oak Leaf Enterprises, Inc.
Chief Architect, MM Framework
http://www.oakleafsd.com