Bow of True Arrows (Sword & fist)

I am only going from memory since this is 3.0, so i don't know the answers to all your questions.

First of all, might composite bows were listed with the alchemical items in 3.0, iirc. Basically, you can apply your strength bonus, up to +x, to your damage rolls with the bow, in your case, up to +1 (str 12).

I'd have to see the bow's entry to be sure, but as I recall it had a +1 enhancement and any arrow fired from it benefitted from true strike. I also recall it being one of the most overpowered and broken items ever printed. Really, there's a lot of stuff in Sword and Fist that's just ridiculous.

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