1. is there some minimal brain size needed?
Humans have a brain capacity of 1350 cc's. Chimpanzee's have a brain capacity of 350 cc's on average. Neandertals have 1500 cc's. In fact, the largest Neandertal brain is at 1700 cc's. This doesn't mean that any of the above are intelligent. It just means that their luggage case is large. And remember, brain's aren't the only things in our heads. We have cerebral fluid and the pituitary gland, and we're not fully sure of how they all work or what volumes they need to function in certain ways.
2. are there certain brain areas needed?
The frontal lobe is a great place to start, particularly Broca's area in the left frontal lobe which contains the center for language (a rough generalization). However, it's more appropriate to say that the connections to different areas in the brain are more important, such as the amygdala/hypothalamus interaction and how that affects emotion.
3.is there a method of measuring intellegence based simply on brain size?
No. But Leselie Aiello and Peter Wheeler came out with a fantastic idea called the Expensive Tissue Hypothesis. Simply put, it is the energy put into the brain that really makes it tick. The brain of a human weighs 2 lb, yet it takes up 20% of our metabolic energy. That's expensive tissue! But that isn't free. Our intestinal tract is only operating at 60% capacity based on other primates. As such, we've super-powered our brains, rather than grow it larger. The increase in size is probably due to the additional fatty cells used to insulate these connections. Think of it like your CPU and the heatsink in your computer, large changes in speed will necessitate changes in the size of the heatsink... but not in a reliable manner. Particularly if you use the water-cooling systems, but I digress.
4. is there any evidence to show that intellegence has increased over time?
That's a loaded question. Ultimately, no. There are increasing forms of complexity in tool manufacturing over time, but these are not correlated with brain size. And even this data is highly suspect, because few of us could slash out a Acheulian handaxe, and that's 1.5 mya old technology!
In the end, remember that when we look at fossils, we see more into ourselves than we do in our ancestors.
Do Svidania,
Theus
Veri Omni Veritas