I've only been doing this for 4-5 months, so I'm no expert, but here goes:
1. The bin will not smell like rotting food so long as you don't overfeed the worms. That will be a trial and error process based on how many worms you have, the environment, including temperature and humidity, and how quickly the food you provide breaks down into something the worms can eat. Generally, the smaller the particles, the more quickly the worms will eat it.

The bin may emit a strong earthy smell; this is apparently normal, the smell being caused by a fungus that helps to break down the bedding more quickly. I have also found that damp cardboard also emits a strong smell. Neither smell is unpleasant, but it can be strong at times.

Finally, any leachate, which is the liquid that collects in the bottom of the bin (I assume you have some sort of catch basin, since you said you got a tower model) can stink to high heaven if you let it collect for too long. This smell is caused by anaerobic bacteria, since there is insufficient oxygen for aerobic bacteria. The solution here is 1. to try to keep the bin from becoming too wet (The decomposition process creates H20, so even without adding water, the bin may become too damp) 2. add fresh dry bedding occasionally to the bottom of the bin to absorb any leachate and 3. drain the catchbasin on a regular basis. Please note: Many sources call the leachate "worm tea". This is incorrect. Worm tea is created by soaking vermicast/vermicompost in water. Leachate is bacteria laden waste from the bin. The two are not the same thing. I don't believe using leachate in your garden will harm anything, it just won't have any beneficial effects.

2. If the environment is suitable for the worms, they will not try to escape. However, this is easier said than done. I'd recommend leaving a light burning over the bin, at least until the worms feel more at home. Worms don't like light, and will stay in the nice dark bin instead, even if the surroundings aren't entirely to their liking.

3. If you overfeed the bin, it may attract flies, since the flies will be attracted to the rotting food. Fruit flies, no-see-ums, and mites can be added to the bin along with any fruit you add. To mitigate adding unwanted critters, either microwave or freeze any fruit before adding it to the bin. Note however, that not all flies are created equal. Black soldier fly larva are generally a welcome addition to the bin, because they break down both food and bedding very quickly. Maggots also serve this function, but who wants maggots in their bin?

All you old-timers out there, how'd I do?

Jason did a good job, but thought I'd add my $.02 as well, even though much of it reinforces his thinking:

1. will this really not smell like rotting food?

A well managed worm bin will smell 'earthy', somewhat like fresh tilled soil. It's noticeable and sometimes pungent, but not really what I'd call offensive. However, if you feed way too much and/or the bin becomes too wet, anaerobic decomposition can create the offensive rotting smell. If you notice a bad smell, simply take corrective action. If you've fed too much, you may need to scoop out recently added or excess materials. Fluff the material in the bin to provide necessary air and leave the bin uncovered for a time if it seems too damp.
Liquid in some feed stocks and Decomposition release moisture into the bedding. You may not need to add any extra moisture at all (and when you do it's most effective to use a spray.) I use a spoon to carefully dig into the bedding to monitor moisture.

2. how can i prevent the worms escaping?
As Kelly Slocum once put it, "your objective is to create worm heaven, not worm prison." If you do that, you'll have few if any worms looking for 'greener pastures'. A few wanderers is to be expected, but if you should ever notice a substantial escape attempt, something must be terribly wrong in the bin. The resolution is to solve the problem at the root cause, not add more guards on the tower (like bright lights!). The bedding may be too wet, too acidic, too old, or too hot and should be corrected. You have some advantage in a tower system since you have somewhat separate micro climates. If once section becomes offensive or hostile to the worms, they can escape to a more friendly level. Although not a solution, it can buy more time and prevent losses.
The real key I think is finding a balance, since as many or more problems can be created by over attention than neglect (e.g. feeding too much or improperly, adding too much water, etc).

3. will it attract flies?
Unlike the outdoor trash can, This is generally not a problem, especially in the indoor bin when the veggie waste is slightly buried in the bedding. It is a good idea to either nuke or freeze fruit waste to prevent fruit flies. I never see a problem with house or horse flies.
I tend to disagree with Jason about soldier fly larva. Although some consider these to be beneficial and I confess they are not harmful, my bins function just fine without any maggots and I prefer it that way.

Moderation, observation, and deviation will serve you well with a worm bin. Start off slow with the food. Don't feed them again until they've cleaned the plate. Moisture (70%), like a...altogether now..."damp, wrung out sponge", is most important. If you have proper bedding (newspaper strips, coir, composted/composting manure, leaves, etc. the vermi will eat that if the good stuff ain't coming.

The only way to ascertain these developments is to get in there and see what's going on. That will allow you to make adjustments with your schedules.

Being worms, you would think they are pretty stupid...but NOOOOO...if the bin is a resort, they ain't going anywhere. They WILL check out, enmasse, if it gets too hot. I know for a fact they will.

Chuckiebtoo