madea,
You seem to be confusing the the 'GIFT format' with the 'Embedded Answers (Cloze) format.
The GIFT format import function is for writing questions (Multiple Choice, True/False, Short Answer, Numerical, and Matching) in a text file using the 'GIFT' format. Each question must be separated by a blank line. This text file of questions can then be imported into a category of questions. Of course, all these questions can also be individually created and edited using the moodle interface.
The Embedded Answers (Cloze) format is a way of including more than one item (question or problem to be solved) in a single question. This type of question can be made and edited via the moodle interface, or written in a text file and then imported. However, when importing, unlike the GIFT format, only one question at a time can be imported. Note that one question may contain many items; blanks or pull down menus.
So the answers to your 4 questions are:
1. Can I write multiple Cloze-type questions in one .text file and have them presented as separate questions?
No. So, the numbers at the beginning of a close item, for example the '2' in your example; {2:MULTICHOICE:=embedded-side#Exactly!~central-side#Sorry...}, is the weighting for that item and not the item number.
2. Can Cloze-type questions be included with the questions I've already created in a .text file using GIFT format?
No, unfortunately not. Though I guess if the GIFT format were to be 'upgraded, it could be written to 'understand' Embedded Answers (Cloze) format type questions.
3. Where in MOODLE can I go to get information on how to write/import Cloze-type questions?
Yes, here
http://moodle.org/mod/forum/discuss.php?d=36521and here
http://moodle.org/help.php?module=quiz&file=multianswer.html4. Are Cloze-type questions the same as "Embedded Answer" questions?
Yes. As mentioned above, the 'official' name for the type of question that you have typed an example of, is 'Embedded Answers (Cloze)'. Some people get confused by the fact that there is a question type called 'Short Answer,' and one of the question types within the Embedded Answers (Cloze) type question is called 'SHORTANSWER'. From a student's point of view they look the same, but from a quiz maker's point of view they are not the same.
Hope all this makes sense.