1) There are several algorithms for performing multiplication and division with signed-magnitude numbers, including array multiplication and Booth's multiplication.
2) Hardware designs for signed-magnitude addition/subtraction, BCD addition, and restoring division are also covered. These designs make use of components like full adders, correction logic, and shift registers.
3) Special cases like overflow and division by zero must be handled to ensure correct operation of multiplication and division circuits. Interrupts can help handle errors caused by conditions like overflow.