ESA sanctioned/stopped completely - advice please.

Hi all,

A little bit of information about me first.
I've been on Incapacity Benefit and DLA for around 8 years now. I have a mental health issue called retro-grade/anterograde amnesia kicked off by epileptic fits. Basically my brain doesn't process or store new information and sometimes wipes out older memories, so this will read like a diary entry because it's read not experienced.

Earlier on this year the benefit changed from incapacity to ESA, I filled out the big medical form but was never asked to go for the ATOS medical, I was placed in the WRAG group.

Had my first work focused interview on June 18th.
Met the advisor had a chit chat, discussed work, I explained my condition being not able to store new memories and needing to have everything written down. I explained that I often had fits which resulted in the loss of recent memories and stuff having to be re-learned from what I've written. I went on to explain about my 'head days' as I call them, which are days where I literally just don't wake up.
He did lots of nodding and uh-huhing.
I went on and explained that I had been fired from my last job after they had re-trained me for the third time and said that I doubt very much any employer would be willing to retrain me over and over and that I thought the best course of action for me would be to be self employed.
We talked about that for a while and I said that I had previously been on a college course which, although I've forgotten the actual course, I still had all my notes for and off the back of that I had been teaching myself to make jewellery for the past year, writing everything as I go. I said I'd had a couple of fits during the year and had to begin the process a couple of times but because I had everything written down in my own writing style it was easier to understand than starting from scratch.
He seemed very enthusistic about all this at the time. I had pointed out that I had no idea how to turn what I was doing as a hobby into a job and he then referred me to a company called Ingeus who he said would be able to point me in the right direction. He pointed out that if I decided to go with Ingeus it was a 2 year programme that I had to stick to. I asked if there was any contingency in place because over the course of 2 years I am going to have fits and lose the memory. He advised I should ask them when I go to the informal introductory day. The advisor also told me as I'm on contrubution based ESA the course at Ingeus was voluntary.
At the end of the interview he suggested I call the DWP and tell them I make jewellery which I thought was a bit odd, why would they be interested in my hobbies? but I did and that's when everything went horribly wrong...

When I called the DWP they informed me that my ESA has been sanctioned as I have declaired to the Jobcentre that I have been self employed for over a year. I relayed the conversation I had had with the man at the jobcentre regarding a hobby but she just said I would be receiving form PW1 in the post. I got the form which I couldn't fill in because I have no hours of work, employer, job title or wage. I took it to the CAB told them what was going on and they helped me fill out a statement on the back of the form stating that it was a hobby I had and not a job and that in the space of a year I had sold 1 piece of jewellery at a car boot sale for a £5.
3 days later I got another letter from the housing benefit telling me it had stopped because I have been self employed for over a year. I phoned them, went through the whole thing again and they said they couldn't do anything until the decicion maker had decided.
I phoned the DWP a few times eventually being told that my PW1 form that was sent back on the 21st June got passed to the decision maker on the 3rd July and it could take up to 10 working days for them to decide.
Finally the decision maker called me on 16th July and hilariously said she had my form in front of her and had read my statement but she couldn't decide because I hadn't filled in the information regarding job title, hours of work, salary etc .... I went through the whole thing again, explained it was a hobby that at some point in the future when I was actually qualified to do it my hope was to turn it into a job, she said 'well just so you know if you ever do make money from it you need to tell us' I said that's the plan, turn it into a job, get off benefits, be self employed.

As things have turned out the hasstle and stress of all this has brought on a couple of fits and a lot of memory has been lost, including the making jewellery stuff so I'm having to start from scratch re-learning all that information while being brought up to speed on what's happening in life in general and getting my head round the fact that it's 2013 not 2008

So after all that rambling, I have a few questions:

Is it the jobcentres job now to throw as many obsticles in your way as possible while offering no support?
Can my ESA just be completely stopped though I've followed all the rules regarding going to work focused interviews even offering my own solution to getting me back into work?
How long can a sanction last for and can I get any financial support while the decision maker decides?

Thankfully I'm still getting DLA or for the past 5 weeks I would have had no money at all.

thanks for reading, sorry it was rambly