Thieves can get the scroll skill.

Thieves can get Arcane Literacy(?) skill that says makes them recite scrolls at the level a mage can.

All mages get spellcraft.

Questions:
1) Does spellcraft increase the level of scrolls when recited?
2) Does Arcane Literacy allow a thief to recite scrolls with the level of a mage with or without spellcraft (assuming spellcraft increases scroll level)?
3) Does a thief without Arcane Literacy recite scrolls at a lower level than what the scroll is? Any idea how many?
4) Does anyone know what benefits you get if you have Arcane Literacy and a high % in pen and whatever the other skill is that's supposed to synergize with Arcane Literacy?

The arcane lore skill only reduces your chance of failing to recite the scroll. It never gets failproof, but the success rate is much better for mages and arcane thieves, and high int characters.

Spellcraft is irrelevant.

..they said it was less chance to fail and worked like spellcraft in that the spells were cast at a higher level.

Arcane lore does not increase scroll spell level. I don't know if it might've been intended to, but it doesn't -- any thief I played would attest to that.

Gr

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What's a ballpark fail rate for a thief without Arcane Lore with scrolls at 100%?

I used to have precise statistical data from grepping through half a gigabyte of Einrai and Kazzru logs, but I don't remember it now. I'll see if I can look it up later.