I'm sorry that I can't provide a simple example here - that's because it's not simple. Using the built-in recurrence (with dynamic expanding) is described in the following tutorial:
http://www.daypilot.org/calendar-tutorial-recurring-events/
However, that's as far as I can go here without reflecting the needs of a specific application.
> Further to point 2 and beyond..
> How do I create the occurrences from the rule as far as the database is concerned, to put me to point 3..
You need to use the RecurrenceExpander.Expand(). See an example of RecurrenceExpander use in Demo/Calendar/RecurrentEvents.aspx.cs. You feed it with a DataTable with records that include the rules and you will get a DataTable with occurrences.
Then you need to make several architectural decisions:
1. How to store the records (in the same table as the normal records, in a separate table; or use another "cache" table that will copy the normal events and the occurrences).
2. How to identify the master record (probably using the master event id), how to identify the occurrence (you will need to store the original start and also the modified start in case that) so you can replace the event in case you have to re-generate the occurrences.
3. Will you support exceptions from the rule? Another headache - you will need to add different logic to all event-related event handlers (event moving, resizing, editing, deleting) that will take the recurrence series into account.
When you decide to store the occurrences as individual records it becomes simple from the DayPilot Calendar point of view (hence "You can store the recurring events as separate records, no problem."). But it will move all the logic to the backend.