I believe Scrypt is used for Proof of Work but I'm pretty sure the addresses are still created using sha-256. They do also start with a 'd'.
Something like https://github.com/litecoin-project/liteaddress.org shouldnt be that hard to modify. Something in javascript is likely the ideal solution because a hosted service would let the hoster see the private key. In javascript its all done locally.
Yes, sorry, your absolutely correct. I was was not case sensitive there, which matters.
In the source its defined at https://github.com/digibyte/DigiByteProject/blob/master/src/base58.h#L281
To know what you need to change to liteaddress.org to adapt it to your coin, simply use a diff tool to compare bitaddress.org to liteaddress.org code. The differences besides the strings for to "Bitcoin" or "Litecoin" will be the parts that need to be changed. Those parts relate the public and private addresses.
I have it up and running at http://digiaddress.org but the paper wallet image hasn't been updated yet which is why I haven't been spreading the news, not that I'm keeping it secret its just isn't fully ready yet and I'm no graphics artist