1. I've read that you could damage using an 31Khz input on a TV, and using soft 15K to display it proper. But before booting that software (automatically) how can I protect my TV or shouldn't I worry about it
+1 on Yeltsew's advice on GroovyMAME and CRT_Emudriver.
From my experience, TV's are more likely to be safe with out of range signals than arcade monitors. The Trinitrons I've tested haven't had any problem with it, they'll display garbage on screen, but aren't damaged.
This is by no means a guarantee that it will be safe on your TV though. The safest thing to do is wait until Windows has booted and the output is 15kHz before turning the TV on. I'm planning on using a PLC to turn mine on that is triggered once my front-end loads. There are also simple computer-controlled relays available. A really simple solution is to use separate speakers and wait for the Windows start-up sound before turning on the TV.
2. I'm looking into making it a rotating screen (as I like shooters), is there a tested and well documented way to rotate a CRT?
I've thought about a rotating CRT cabinet, but I'm concerned about the stability of the geometry. Once a CRT is calibrated really nicely it's best not to move it. Moving it in relation to the poles of the earth and other magnetic fields has an effect; I
think that would include just rotating it. You'd have to test whether it's noticeable with your TV.
The bulk of a mechanism that can safely rotate such a heavy display is also a concern, as twistedsympony also mentioned. This isn't to say it hasn't been done though. Here's a well-executed example in progress:
http://forum.arcadecontrols.com/index.php/topic,131026.0.htmlThat's the first I can think of, but not the only one; search around.
3. If I can rotate it, would I degauss it after rotation?
Yeah, that'd be helpful. If your set has an internal degaussing coil on the back of the tube, you might be able to wire up a switch to activate it on demand.
5. Apart from vertical shooters is there anything else worth a rotating screen for?
Are there other vertical games worth playing? Yeah, lots. All the classics from the early era like Yeltsew mentioned. Contra also comes to mind.
6. I've read having vertical/rotating CRT could be a fire hazard, how could I protect against that, if that is true?
A fire hazard? Never heard of that one

7. Can vertical games look half decent on a CRT with just software rotating them, instead of a full monitor rotation?
Playing vertical games on a horizontal monitor is known as yoko orientation or yoko-tate in the shmup community. There is a good deal of talk about it in this board. You should check out the thread on TV's in my signature. Long-story short, yes you have to scale it in 480i, so it's a compromise.
When making the extra effort to use a real CRT you should always run your games in proper native resolution (~240p for 90% of MAME) whenever possible, or else you aren't getting nearly the full potential out of the display. Of course this isn't always possible, so if you don't have a rotating cabinet or a seperate vertical cabinet yoko games are a typical area of compromise, along with 25 and 31kHz games, all of which are typically scaled to 480i on a 15kHz tube.
Most of your problems stem from the fact that you're using a TV instead of an arcade monitor...
I consider myself president of the LCD haters club but seriously I would use an LCD over a CRT TV. I really hope this screen supports 240P over RGB scart otherwise it's only real benefit is for a tube swap on a real arcade monitor IMO.
When properly set up, a 15kHz CRT TV can rival the picture quality of a 15kHZ CRT arcade monitor. The only real difference is the input format. OP, you just need to confirm that your SCART input accepts RGB, as SCART can also carry composite, s-video, etc.
For anyone else reading, note that non-SCART TV's can get the same performance by using a VGA to component transcoder, provided the TV is 15kHz ("standard definition") and has a component input.
Arcade monitors have a nice big metal frame with nice big mounting tabs that make them easy to mount and IMO are a necessity if you want to rotate the screen. Instead of a thick metal bracket you're working with a blob-like plastic shell that's not designed to be mounted never mind turned sideways.
Many TV tubes have the same mounting tabs/ears as arcade monitors, so they can be easily mounted to a frame after decasing.