R help - May 2007 - GLM with nested factors, covariates and binomial error distribution

Dear R experts, 
  I want to create a GLM with nested factors and binomial error distribution. 
  I have five independent variables, three categorial and two continuous ones.
  The thing is that one of the categorial factors is nested within the other,
i.e.
  only the factor combinations (with 10 replicates per factor combination)
exist:
   Fac1  Fac2
      A    g    
      A    h
      A    i
      B    j
      B    k
      B    l
      B    m
      B    n
      B    o
  
  What I would like to know is:
  1) How can I include the hierarchical structure of Factors 1 and 2 in the
model?
   (i.e. decide whether Factor 2 has more explanatory power than Factor 1 alone)
  2) Is the unbalanced design a problem in this case?
  3) How can I include two continuous independent variables in the model?  I am
actually quite sure that they don't play a role but need to be  sure.
  
  Thanks a lot!
    Florian Menzel
 
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