Hi Jason,
Welcome to our forum.
The project is just a simple circuit that detects a transmitter by making a tone. When you touch its antenna then you also become its antenna and it picks up more radio and TV stations, taxi cab radios etc.
When you move your transmitting cell-phone closer to it, the pitch of the tone should increase, unless you have its sensitivity control set too high and it is overloaded.
Hi Maximus,
Welcome to our forum.
1) You could tune it by replacing its R7 with a high-Q parallel LC network.
2) It picks up any RF within its frequency range and sensitivity. If you added tuning and it received a radio station, you wouldn't hear the program, just a tone.
3) Its output stage just provides a tone, no data.