Hi, Gus - and welcome to the ANA website discussion forums ~
Due the relatively small size of your AN, you have options. Surgery and radiation being the obvious, although should the tumor remain 'stable' (no growth) observation ('watch-and-wait') remains a third option. To attempt to answer your questions:
The balance nerve usually has to be cut but this is actually a benefit because if the AN has impacted the nerve, which it almost always does, your balance will be negatively affected. Once the nerve is inoperative, the brain will adjust to receiving balance-related input from your 'good' side. Because the damaged balance nerve has probably been sending sporadic signals to the brain, negatively affecting your ability to maintain your normal equilibrium, your ability to maintain your balance will improve.
As Adrienne stated in her post, losing hearing in the AN-affected ear is situational. It will depend on the damage the tumor has already done, your choice of treatment and a little bit of luck. Some surgical procedures (Translab) require severing the nerve, making unilateral hearing loss inevitable. Other surgical procedures don't require cutting the nerve but still have a risk of hearing loss. Radiation tends to avoid hearing loss but does not improve it, either.
Endoscopic surgery has been successfully used in the recent past but it is limited and a bit controversial. Here is a link to the Skull Base Institute - the premier practitioner of endoscopic surgery on ANs. http://www.skullbaseinstitute.com/ For patient stories from this website, just type in 'endoscopic' in the Search bar (upper left corner of the screen). Some of our members have had good results at SBI.
I underwent 26 FSR treatments in 2006 to destroy the DNA of a 'debulked' AN. I received approximately 27 GY. The treatments were both uneventful (no problems) and successful.
As Adrienne stated, the tinnitus will very likely remain, no matter what your choice of treatment. By the way, House Ear Institute is renowned for their expertise in removing acoustic neuromas.
I trust this response (and the others you'll soon be receiving) prove useful. We know what you're dealing with and understand your concerns. Please keep us informed as to what your latest MRI scan reveals. Thanks.
Jim