I am looking for references that can answer the following two questions:
Does YTD work for all versions of Mondrian?
What are the requirements on the Mondrian and physical schema to enable the YTD operator in MDX queries?
The question is a bit too vague.
Every version? No idea, but it works for Mondrian 3 and Mondrian 4. I don't think you want to look further back than that.
The time dimension has to be defined as type="TimeDimension"
on the schema and the levels must have a levelType
attribute (see documentation). I recommend that at least year, month and day levels are defined.
You should have the time dimension as a separate database table, but that's not required. It does, however, improve performance.