Are you available to attend one of office hours? We have daily office hour from 3 - 4 p.m. ET. Questions like this are best answered live.
I will attempt to answer it in as much detail as possible.
What you are doing will work. If you want the registrants to register themselves then you may want to create a site that only has the free levels and send that to those that need to register. See this KB article: http://help.clickandpledge.com/custo...stration-sites
You may set up unlimited number of registration sites for each event. Each site may include any number of available levels.
"Donation" that you are referring to is really "Opportunity" in Salesforce. NPSP has renamed the Opportunity to Donation. We create an opportunity for each transaction including free transactions. So if you register someone for a free event an opportunity will appear in their contact record. Also the Event attendee list will show it as well.
Have you added the Event Attendee related list to the contact layout?
I hope this answers your question.
Please let me know if you need more clarification.
BTW: sorry for the delay in the response- this post was missed in the reply queue.
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