An update on this, my app status shows Granted, Scanned, Printed on July 3rd... not yet received back in San Francisco. But great news, regardless!
To summarize key things (that seem to have worked at SF-CGI):
NOTE: For whatever reason, each consulate seems to impose their own stipulations on what they will accept. So if you are *not* applying to SF one, read the instructions for the consulate of your jurisdiction carefully!
a) Standard Costco 2"x2" passport pictures with their default light background. (No fancy blue backdrops or 35mm reduction of pictures.)
b) Self-attested all photo-copies (Wrote "TRUE COPY of ORIGINAL" and signed next to it.) Did not have to notarize anything.
c) Used same information on the form for family members in India for both myself and my wife. Just put in name and address for my father and my brother.
d) Sent 3 pictures ... 2 were glued to the 2 copies of the form and 1 was paper-clipped to the package.
e) Sent a combined Cashiers Check for the whole package 275*2 and a 16.50 return envelope.
The only thing I forgot -- which I had to fax later -- was a copy of "Name Change Court Order" for my wife.
Cheers,
Manish