Can a civil suit arising out of a contract dispute be brought against the Federal government in a State court?

No, breach of government contracts is the exclusive jurisdiction of the U.S. Court of Federal Claims.

If you are issued a tax deed can you take possession of the property? If not when, and what steps do you have to take.

Yes, but only after the right of redemption expires. Then you have to file a quiet title action on the property.

Yes, it can be contested anytime. The burial is of no relevance unless you think an autopsy is necessary.

Do I need a litigation attorney?

At the very least, do not give him any more money. In truth, $2k is not enough to bring a suit over, but if you feel that you must, small claims...

Had to give up equity in house to pay for wifes cancer treatment, Boss bought house, now daughter trying to evict employee.

Your question does not make clear which aspects of the deal were done on a handshake? If the buyback was done on a handshake, and your neighbor...

Im out on bond if i motion to a higher courts will my bond be revoked

This will not cause your bond to be revoked.

For lawsuit represent, do federal litigation lawyers generally charge more on a per hour basis than do state litigation lawyers?

Not necessarily, but probably. Anybody who passes the bar exam is licensed to practice in state court, but you have to make a special application...