Each space to be rented would have to be listed separately and have its own price/calendar. You would have to become a master at keeping the calendars up to date. Don't use Instant Book! If you have a room reserved, then your entire home listing would have to be blocked and if you have the entire home reserved you'll have to make sure the separate rooms are blocked on their calendar. Sounds like a real nightmare to me keeping it all straight but it can be done. Plus, would you want to give up a potential entire home reservation for the sake of renting a room?
As far as a security deposit goes, each host has their own ideas, but here's a helpful discussion on the subject:
http://globalhosting.freeforums.net/thread/1105/security-deposit-suggestions
Hope this helps..would love to know what you decide to do!