Well, I can't advise on the first question. I never put my hunting bow up for any extended period of time. I practice with it during the off season. I do shoot target, and have a different bow for that. But, I shoot my hunting bow at least once a week.
I may be able to help on the peep issue.
Tying the knots (serving) above, and below the peep sight is a good idea, in my opinion. I use waxed dental floss to "serve" in the peep sight. So far as performance goes, I have not found a difference in the mint flavored dental floss versus the regular.
There is no way I can explain how to tie the serving on properly. It is very simple, and, once you learn it you'll be fine. Properly tied, you will be able to slide the serving up, and, down the bow string to allow adjustment of the peep sight. But, the serving will remain in place during shooting.
You probably need to find an archery pro shop bow technician, or, someone who is up on that stuff to show you. (Altho, they may recommend that you use something other than dental floss. hehe)
Hope that helps!