Those "bumps" are scale insects. Since I am not sure what a "Red Tip" tree is I suggest you go to a local nursery or call your local county Extension agent and get their recommendation for how to treat you tree.
It depends. If you put down just a layer or two of newspaper it should breakdown by spring and the tulips will have no problem growing through the mulch. If you put a heavier layer I suggest you pull back the newspaper layer in early spring let the tulips grow then replace it when they are up high enough to be above the mulch. Newspaper is a good mulch but it is most effective if it is shredded. Only put down a solid layer if you do not want anything to grow up in that area.
