1) Can't understand Mrs. Linscott and Georgie's motive for killing Short. Were they just psycho? Why kill a young woman who looks like their own daughter?
Elizabeth Short is leaning on the Linscott family for money (effectively blackmailing them). Short wasn't a porn actress; she was brought into this world by her roommate, effectively as an outsider. As such, she's disgusted and degraded by her experiences in the film. She leans on the Linscott family to keep her quiet since making and distributing porn was illegal and would have tarnished the family's reputation if it got out, so Mr. Linscott arranges for her to go on a date with Georgie, as a favour, which she'll be well paid for.
It's never clear if Mr. Linscott intends for Short to be murdered by Georgie or if it was just an effort to scare her enough that she wouldn't be tempted to blackmail him again.
Georgie is obsessed with Short because she looks like Madeleine who in turn looks like a young version of her own mother, Ramona. His secret attraction to Madeleine is based on his past relationship with Ramona, his former lover. Because Ramona is still in-love with Georgie, she's enraged by his attraction to Short as surrogate for Madeleine, and since she can't exact revenge on her own daughter, takes it out on the 'disposable' Short.
When she disfigures Short, the implication is that she's disfiguring Madeleine (by-proxy) but it's also part of her (and Georgie's) obsession with death and the destruction of beautiful things. Georgie was left physically and psychologically disfigured in an accident arranged by Mr. Linscott (with the intention of murdering Georgie) and this seems to have also damaged Ramona, psychologically if not physically.
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