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I have no idea on the livery issue. I tried going down that route with another user and did not have much luck.

I have been flying with P3D and FSX players and their elevation tends to be 30-50' off from where I am. I have tried to check and uncheck the box in settings as well as checking and unchecking "Runways follow Terrain" in x-plane to no avail. Has this ever worked between these sims? If so, ...

Sounds to me that you did not have enough AI aircraft added in the x-plane menu.

Could we not use the following datarefs to see what the other user plane's livery is and then pass that information on? Also I noticed that the status of the flaps is not being used either so there is no animation.

sim/aircraft/view/acf_livery_index
sim/aircraft/view/acf_livery_path

Did you guys have any luck? The only work around I can think of at the moment would be to have multiple copies of an aircraft and changing the object paint files with that of the livery you want. That is going to get heavy on the real estate down the road.