I'm looking to make an e-book as a free give away available on my website. Can I make my e-book on Lulu and then give it away as a free download from my website?
You can set the eBook price to $0 on Lulu and include a link to the book on your website.
Another option is to download the EPUB file once you complete the publishing process (go to My Projects, click on the project name, and download to the file from the details page) and attach it to your webpage for direct download.
One more question. Does Lulu have templates for designing an e-book cover and for designing the inside content pages as well or does all that have to be done prior to uploading?
It's all done before uploading.
There is an eBook conversion guide you can download here: Lulu eBook Creator Guide
You should design your front cover image to be at least 612x792 pixels (8.5x11) at 150 dpi.
Great! Thank you.
You can create generic covers/Marketing Image in the Cover Wizard.