Webadict, it must be contact for your powers to have effect. Some Therianthropes (from now I'll call 'em Shapers, it's the shorthand name) get around this by growing underground feelers/roots which then grab the creature to be Shaped, but there must be some contact.
As for molding sentient beings, there is no actual penalty, but it is forbidden by law. If you're caught using your magics on them in any way without their permission, you are in BIG trouble. However, if you are granted permission (such as for healing or cosmetic surgery) then it is perfectly fine.
As for energy, that part's malleable. Let's just say that after any significant expenditure of energy (such as a fullbody makeover or massive healing) you will be worn out for most of the day. Smaller uses can be offset by draining energy from the environment (again, this requires contact). As for limits to your powers, you can't morph your body in a way you have not analyzed in another creature ie. no tentacles f you've never touched a creature that has them. In addition, initially you'll be somewhat weak, but you'll get stronger as you use your powers more. Finally, overextending yourself can lead to unconsciousness or even death, and if your 'patient' isn't powerful enough they may be killed if the Shaping is major enough.
Fortis, one thing I should have added for clarity. Sanctuary is on one side of a quite large island. Completely dividing the island in two down the middle is a mountain range, raised by the people of Sanctuary some time ago. The reason they did this is that there are three groups of dangerous Castes on the other side of the mountains. The Nexii, who are extremely powerful, extremely hard to detect, and act as spies for the person described in the Prologue. The Tech-heads or 'Freaks', which are humans who have willingly substituted various body parts for machinery. They have short life-spans but are extremely aggressive and strong. And finally, the Artificiers. Not willingly violent, but they are the Tech-heads slaves, and they may be forced to fight you, with a wide variety of ingenious devices. In addition, Artificiers can create Automata, sentient machinery that will do their bidding.
Your contact was making the understatement of the year when he said crossing the mountains was unfortunate. The pass itself is perfectly safe, but its a free-for-all on the other side.