There's an excellent guide to PIP on hotkeynet.com. I personally haven't done it but the guide makes it look rather simple.

As for looting/interacting with NPC's (to get quests/etc):
Setup a macro on your slave(s) that says:
Code:
/target party1target
Place this macro on one of your action bars, I put it on one of the right action bars
Keybind a key to it in the wow interface options, I chose backslash '\'
Now while you're still in keybindings, find the new interface option blizzard added called 'Interact with Target' and setup a keybind for that. I chose Shift-Backslash.
Also, make sure the option to autoloot is enabled on your slave wow(s).

Now just setup HotKeyNet to broadcast those keystrokes to your slave wow window(s).


To loot/interact with an NPC now, you target them or the corpse with your main. Then just press your two keys, in my case backslash then shift-backslash.