But, I digress. Getting back to the original questions ; in reverse order...
Chatterton said:
2) How long would it take to rotate around the ring to simulate Earth gravity? Would it be so fast that it created problems? Dizziness, nausea, etc.
RPinPA covered the approximate times in
post #4. You wouldn't feel any inner-ear related disorientation.
1) How high up should the ring be?
Good question. Remember how the orbital ring works : the push outwards from the grav-ring matches the push inwards from the geo-ring, so there's no stresses being put either on the tethers or on the ring structure itself, except the 1g where the two rings meet, and that mechanism could be as simple as that to "levitate" a maglev train on Earth, and no more powerful (per unit of distance) either.
This means that the mass of the geo-ring, under the influence (mostly) of the relatively weak gravity of the Moon, has to mass more than the mass of the 1g centrifuge of the grav-ring. If it were near the ground, it would be 6x as much. The further off the surface, the less the influence of the Moon's gravity, so the higher you go the greater the ratio of the mass of the geo-ring to the mass of the grav-ring (it doesn't have to be structural - just pile rocks on top). So you get to choose how high you want to go just by changing that parameter.
Except, if you go too high you get in range of the Earth Moon L1 & L2
LaGrangian points, where all the gravities and centripetal forces do some cancelling out and an object can just "hover" directly above the Moon without moving (relative to the Moon). There, the grav-ring still has pull, but the geo-ring doesn't. So, not that high (23,000 km for L1). As is, no matter what height you choose, you'll want to weighten or lighten some sections of the geo-ring, like balance weights on a car wheel, to compensate for things like
mascons and the aforementioned combined gravity and centripetal vectors.
Maybe, pick an altitude such that, if you drop an item (or a load of metal) through the "floor" of the grav-ring, it will sail up all on its own to the orbit of where your spaceship factory is.