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The codex says nobs can take a battle wagon as a dedicated transport. If this is done, does the battle wagon follows all the rules for dedicated transports, most importantly, does it no longer take up a heavy support choice? (yes, my power gamer is showing its ugly head)
You are correct.
You are correct.
It's true, but I would only use a battlewagon transport in a list that didn't have many vehicles. The reasoning is that a trukk, overall, is a better transport for getting the nobz into close combat. The trukk is fast, and there is much less trouble for your nobz if it explodes, when compared to a battlewagon. Also, it's a lot easier to maneuver a trukk around other vehicles, and get your nobz up to the enemy troops.
Of course, trukks are a lot easier to destroy than battlewagons, so if you don't have other vehicles to give your transport cover, and your opponent can freely concentrate their fire upon your nobz, then you want them in the toughest vehicle possible.
Another benefit of using a trukk is that when combined with several teams of boyz in trukks, your opponent won't be able to tell which transport has your nobz in it (granted, this only applies when fielding nobz as troops). If the nobz arrive in a battlewagon, your opponent will know where to concentrate his fire.
"Any job worth doing, is worth doing with a powerklaw."
well, part of the reason I asked was so that I could have all heavy support slots open for looted wagons and still be able to have a battle wagon as well. Now I know I can. ^_^
However, considering your advice about the trukks being better for transporting nobs, which I agree with, I might not do this... we'll see what happens to my army in the future.