The surge arrestor is clipped onto the rail in the DB next to the existing breakers, the live (red) wire is looped from the existing live loops above the other circuit breakers onto the top of the surge arrestor. The bottom of the arrestor is connected to the earth bar. It would be better to install a seperate earth spike and connect the botom of the arrestor to that to make sure that you have a good earth but it is sometimes not possible if the DB enclosure is indoors.
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Before the object on the positive and after on negetive
The voltage arrester works by conducting when there is enough voltage to turn it on. Often, an arrester on a primary distribution circuit has a spark gap to ground, so that lightning strikes are limited in voltage, protecting the circuit. Other types of arresters, such as MOV's, can be used in surge protectors.
If a surge protector had a very high resistance at all voltages, the wires in the surge protector would short out. It would kick off the protector and make it useless. A new surge protector would need to be purchased.
A transient, surge, spike, etc.
Yes, most of the surge strips have an in-built motherboard.