Hello,
Here is my input:
1. Does any of you have any experience working with Git (tortoisegit) and plus+1 guide?
No experience with Git, but used SVN for a long time.
2. What files do I need to source control?
If you use Project View in Plus+1 Guide then "Project Files" is all files necessary to open the project in GUIDE and compile. These files needs to be saved. And as Neil pointed out, keep the project unpacked when saving.
Read more about Project View in Plus+1 Guide User Manual (Help> User Manual), search for "Project View".
From the Project View it should be possible to use your version control software like in the windows explorer.
3. How do I handle the best output files needed to download to the control units?
The Downloadable File, The .lhx File, is visible in the "Output Files" in the project view. These are not necessary for the project, you can always create a new one by compiling it, but a good idea to store if you need to send different versions to customer.
4. Is it even possible to make mergers with plus+1 guide files?
Yes, but there is a file that cannot be merged, the .scs file. This is the graphic part of the project and must be manually updated. If you are one developer, this will not be a problem. If you are several and working on the same project, it can be more difficult. Here you need to work out a process that works for you. Like locking files you work on so no one changes anything by mistake.
This experience is from SVN and I do not know how it is with Git.
I hope this helped a bit, and I think the Project View can be a big help.
Have a nice day.