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Thailand Layover Questions

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Guys - I am travelling to Sydney for 1 month vacation from Mumbai via Thai Ariways in mid-december. To make my trip more exciting, I am planning a 2 day layover in Thailand (Bangkok) over the weekend. It will be my fist trip to bangkok. I am booking the tickets for Thai Airways and they do have a 2 day layover. I have few questions related to this which will help me finalize my tickets... (Please respond soon if possible since I have to book my tickets tomorrow itself).. thanks much in advance -

1) Will Thai airways allow me to check out my luggage at bangkok, if I am flying from Mumbai?
2) I have Indian passport and know we have the visa on arrival option. Would I face any issues with that or is it a simple process? What are the visa charges? What do they mean by saying I need to show proof that I have 20,000 THB.. do I have to show them that much cash or credit cards will do?
3) what is the best place to stay if I have a 2 day layover? (budget USD 50 to 70 per night)
4) which places to best visit within 2 days.. pattaya? any particular plan that i can follow?
5) any other tips?

thanks a ton!
cheers
sandy

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