Great questions, and these do come up frequently. Here are responses:
- Yes, in Workfront, an iteration is the same as a sprint. However, technically in Agile, an iteration is a repetition of a process, also thought of as a "timebox", and it can be any size. A sprint is just one kind of iteration - a sprint tends to be 2 weeks. Other things that could be considered iterations: a quarter (if you do planning on a quarterly cadence), a release, etc. however, currently in Workfront, the iteration only equates to a sprint.
- Yes, it makes the most sense for a user story to be created at the task level, on a project.
- Yes, the Project object is most often used as the Feature or Epic (or Project, if you're using that terminology). It is important to have the "work objects" reflect actual work, aka "value" that you are trying to create.
(Infrequently, I see the Task being used as the Feature, and sub-task used as the Story. I think there might be special cases where this might need to be implemented, but I wouldn't recommend it. You'll miss some of the functionality, such as accurate burndowns, etc.)
I hope this helps, @Leigh Burger‚!!! Please reply if there are follow up questions.