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1. What all licenses are required to encode data dynamically to barcode?
--> You need to License Adobe LiveCycle Reader Extensions ES2. "Barcoded Forms" technology is available as one of the options of this product.
2. For what purpose LiveCycle Barcoded Forms ES is used. Is it used only for decoding?
--> "LiveCycle Barcoded Forms ES" is actually discontinued. The technology is now rolled into "Adobe LiveCycle Reader Extensions ES2". Now, if you do need to capture data into barcodes dynamically you will be required to license the product. If the forms are filled out in the free Adobe Reader and you didn't "extend" the forms then the barcode will simply disappear. Included with Reader Extensions is the ability to call Web Services from Reader, Markup (commenting), and very important, save offline.
3. How do we check the successful installation of LiveCycle Barcoded Forms ES? Is it a feature of designer?
--> It is not a feature of Designer. Designer allows you to place the barcode and decide what data goes into the barcode but it does not apply the required license to the PDF before you make it publicly available. Although this video is dated, the concepts are still the same today: http://my.adobe.acrobat.com/barcodedformsandreaderextensions/
4. Is it mandatory to specify the data length when dynamically binding data? Will the data length expand according to input data bound?
--> Although it is not mandatory, if you do not specify a length you risk the barcode being over-filled and blanking out. Do not publish forms that capture data into barcodes without lengths specified as well as data types. See http://my.adobe.acrobat.com/barcodedformselearningpdf417bestpractices/ for some other best practices.
I hope this helps.
Thanks a lot Lee. It is really helpful.