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Do I have to download any recovery ROM image or is one already included with the ROM manager?
Also can I assume it's a temporary ROM, i.e. I'll still get back my original stock HTC Sense ROM once I reboot?
does it matter how much battery life is left when i wipe the battery stats?
I don't think so, provided you immediately power off and recharge fully before using the handset. I always do it after fully charging the battery as I find that easiest, and it seems to work okay.

Open ROM Manager; the first item in the 'menu' will be "Flash ClockworkMod Recovery". Select that and when it's completed choose the one labelled "Reboot into recovery" or similar. Once at the recovery menu select "advanced" then "Wipe battery stats".
Open ROM Manager; the first item in the 'menu' will be "Flash ClockworkMod Recovery". Select that and when it's completed choose the one labelled "Reboot into recovery" or similar. Once at the recovery menu select "advanced" then "Wipe battery stats".
I have done this but I don't get the advanced menu option in after I boot into recovery mode