Sher wrote:1.] Were one to go in for the HSMP programme and indefinite leave to remain later .... on completion of 5 years, how long does one have to wait post application for the British Citizenship?
As per reply by try-one i.e 4 years to ILR then 1 year on ILR pre applying for naturalisation unless married to a British Citizen where an application can be made upon acquiring ILR. You need to add in the naturalisation processing time including the citizenship ceremonies - I expect the queues like most Home Office new policies/ schemes (sush as the HSMP) to get lengthier. These assumes you meet all the other requirements of the rules pertaining to character (I expect the introduction of a finger printing regime), residence period, soundness of mind etc.
Sher wrote:2.] And having been naturalized as a British Citizen, would public funds then be available to me and my dependents ?
(My dependents include spouse, child under 18 years and my old parents)
Welfare requires you to meet immigration, habitual residence, income (or lack of) criteria - being naturalised in itself doesn't open you to receipt of regular large cheques

. As per comments by others I wouldn't base such as a major drive for immigration anyway..the figures are small and the stigma (personal and public) unless based on health grounds huge.
Sher wrote:3.] Post citizenship, is one employable anywhere in the EU without a work permit/ visa?
EU nationals can live and work in any other member state - you must meet the relevant legislation for a particular profession if required e.g. medicine and it helps to speak the language.
Sher wrote:1.] Is there a conscientious policy to re-unite families
You can sponsor dependents classed as your:
i) legal spouse,
ii)unmarried partner (either sex) subject to meeting co-habitation requirements showing your relationship is 'akin to marriage',
iii)children under 18 years old - natural and adopted (including de-facto),
iv) parents/ grandparents - there are specific age requirements for this category as well as evaluation of compelling circumstances that are too detailed to go into,
v) The Home Office can consider an application to sponsor those who have aged out or other family members e.g. orphans as a concession outside the rules.
Sher wrote:Why would one (esp. a Highly Skilled person) otherwise re-locate and sweat it out in a foreign land minus family and festivities ?!
Only if he were to have benefits in excess of that in his own country .....
I am sure progressive minds at work in immigration recognise this fact well.
IMHO benefits here should be along the lines of 'availability of opportunity for career development' as opposed to welfare payments i.e. education, employment/ self employment including the ability to raise capital at relatively low interest rates and a climate condusive to such ie. political and economic stability..I know there is inflation but I know my 1 pound today is not going to be only worth 50 pence tomorrow or in a month unlike some other countries.
Note
All answers are based on immigration and nationality law as it currently stands - by 2009 things I suspect could very well be different.