I've consulted with the WordPress Polyglot list and have got answers to all of my questions.
I thought I would share them with the list, perhaps someone will some conclusive information useful. This information came from Nikolay, but has been paraphrased by me for this post.
1. Can a WordPress .MO file be used in WordPress MU?
Yes. The way the translation works, you simply pass in a string and it returns a translation or the original text. Since WordPress MU is based upon WordPress a large number of the phrases will be identical. It will not be perfect, however, a great deal of the strings wil translate correctly. For example on wordpress.com they started using these mo files and the translations were decent. Yes, they do not fit perfectly, but it is flying start.
2. Where would I look for the translations I listed above?
Usually at:
http://svn.automattic.com/wordpress-i18n/
or more specificaly:
http://svn.automattic.com/wordpress-i18n/$lang/trunk/messages/$lang.mo
or
http://svn.automattic.com/wordpress-i18n/$lang/tags/$tag/messages/$lang.mo
If there isn't a mo file, usually there is at least a po, which is already translated and you can convert it easily to a mo with a command like "msgfmt lang.po -o lang.mo"
3. Will I get 70%-80% of the translation if I use WordPress .mo files? Or would it be better to copy an english mu mo file over for all of my needed .mo files just to avoid any missing file error messages?
You'll probably get an even higher translation rate as most of the phrases remain unchanged between WordPress and WordPress MU.
4. Is there another approach that should be used?
If you really want perfect translation, you could contact the WordPress translators (http://codex.wordpress.org/L10n:Localization_Teams) and propose them to translate MU also. Many of them will be happy to.
I'll also post this on TheCodeCave.com to help spread the word.