1. Yes, RS scholarships count.
2.From what I am told, it is meant to be a % of what that student's tuition would be - not the dollar amount. Meaning, 20k is a full scholarship for an in-state student but 50% for an out of state. I think the NCAA has tightened up on this in the last few years. I heard that Iowa was calling a full ride for an in-state student as a 50% (calling out of state "full tuition" and that student was receiving half that dollar amount) and got a Brands a slap on the wrist. I am not saying Iowa was the only one - I think it was pretty happening plenty of other places as well - but that one got reported. The rule was meant to level the playing field a bit - schools with a strong in-state recruiting pool could basically have 20 people on a full scholarship if it was based on dollars paid out rather than % for that student.
So, in-state athletes save total dollars, but they don't increase the number of people who can be on scholarship.
I've had conversations with a couple coaches in different sports and they have all said how PSU's increase in tuition is really hurting recruiting. PSU currently has the highest in-state tuition of any big10 school and is one of the highest in the country (about 14,500 in-state, out is about 26k). Compare that to a little under 7k in-state for North Carolina schools including Chapel Hill. A 3/4 scholarship to PSU would still cost an NC student the same as NO scholarship to his home state school. Ouch!