That's actually the stated minhag, 3.5 times, but in practice all the hakafos are recited at once without breaking and you circle however long that takes.
I believe it's actually practiced. (Besides for situations where it's impossible...)
LOL, dancing before, after, and during. That's just the actual recital of hakafos.
We dance before "Hakafos" begins, then we dance after each of the 3 "Ata Hareiso", then we recite 7 Hakafos consecutively (the one leading the Hakafa will circle the Bima half a round for each Hakafa), then we dance for all 7 Hakafos.