Q: The rules don't specifically state that all the locations must be in the same orientation (the long edges always parallel to the other location cards) but the placement diagram on the back of the rules does imply this. Can locations be placed at 90 degrees to other locations?
A: No. Locations must all be placed with the same orientation.

Q: If, in the course of the game, a 2x1 space is created that is completely surrounded by 10 tiles, can a new location be placed there and instantly scored?
A: Yes.

Q: In this case, what happens for breaking ties and deciding who places the next location?
A: Ties rotate as normal, starting to the left of the player who placed the last distict tile (who would also be the person who placed the location tile). Also the player who placed the location would place the next one as he placed the last district tile.