1) There is a global scope, a function scope, and the with and catch scopes. There is no 'block' level scope in general for variable's -- the with and the catch statements add names to their blocks.
2) Scopes are nested by functions all the way to the global scope.
3) Properties are resolved by going through the prototype chain. The with statement brings object property names into the lexical scope defined by the with block.
EDIT: ECMAAScript 6 (Harmony) is spec'ed to support let, and I know chrome allows a 'harmony' flag, so perhaps it does support it..
Let would be a support for block level scoping, but you have to use the keyword to make it happen.
EDIT: Based on Benjamin's pointing out of the with and catch statements in the comments, I've edited the post, and added more. Both the with and the catch statements introduce variables into their respective blocks, and that is a block scope. These variables are aliased to the properties of the objects passed into them.
//chrome (v8)
var a = { 'test1':'test1val' }
test1 // error not defined
with (a) { var test1 = 'replaced' }
test1 // undefined
a // a.test1 = 'replaced'
EDIT: Clarifying example:
test1 is scoped to the with block, but is aliased to a.test1. 'Var test1' creates a new variable test1 in the upper lexical context (function, or global), unless it is a property of a -- which it is.
Yikes! Be careful using 'with' -- just like var is a noop if the variable is already defined in the function, it is also a noop with respect to names imported from the object! A little heads up on the name already being defined would make this much safer. I personally will never use with because of this.