I always tone the prints right after washing them to remove fixer, as fixer will cause staining (a painful and earlier way to know that your prints are not thoroughly washed). Well, what dilution factor? It really depends on the effect you want. For archival purpose, 1+15 for about 10 min , should give a slight bluish tint to it.
You won't die from inhaling, but selenium dust in the air due to spillage can be a hazard. The noxious smell is actually ammonia, but still can be nasty...
Safety precautions, hmm...let's see.
1. Don't drink it (dur)
2. wear gloves (I wear those disposable surgical ones), wouldn't advise you to do any toning if you've got like cuts on your hands or fingers....
3. Have a separate set of trays, funnel and tongs PURELY for selenium toning. Stuffs like developers and fixers do not go well with selenium, unfortunately.
4. Make sure you have plenty of ventilation. I do it along the corridor outside my house and tray is covered with a cardboard, which is disposed after each session.
5. DO NOT SPILL. Always have plastic sheets or newspaper under the tray, in case of spillage. Spilled selenium left to dry forms selenium dust, which can be inhaled.
6. Wash your hands thoroughly to ensure that not a single trace is present.
If you washed your prints properly and keep the selenium free from contamination, your selenium can last for a long time, almost forever as you can re-use it many many times. Selenium should never be poured into the sink or toilet bowl (actually, none of the photographic chemicals should be), those exhausted /contaminated ones should be disposed carefully and labeled as "poison".
Heard that there's a method of diluting the stock selenium solution with Hypo-clearing agent and you can skip the step of washing the print prior to toning. Only diff is that you need to fix the print twice - normal fixing and sequently with fresh batch of fixer. The prob is that you cannot store the working solution after use and would have to dispose them properly.
I'm still relatively new to selenium toning, so still experimenting with it. Warm-tone fibre-based paper would give the most noticeable colour change compared to the neutral tone paper.