I am actually not familiar with topology, but since we had a short outlook on these things in our differential geometry lecture today, I would appreciate some general remarks:
Let $M$ be a smooth manifold and $\Gamma$ a group of diffeomorphisms on $M$, then
$\Gamma$ is called properly discontinuous, if 1.) and 2.) hold.
$1.) \forall p \in M \exists p\in U$ (open nbh.)$ \forall \phi \in \Gamma \backslash\{id\}: \phi(U) \cap U = \emptyset. $
This seems to tell me that there is basically no fixed point under such a non-trivial diffeomorphism (even more, we get that we can separate the image by an open nbh.)
$2.) \forall p,q \in M,$where $q$ is not in the orbit of $p$ there are open nbhs $U(p),U(q)$ such that $\phi(U(p)) \cap U(q) = \emptyset$ for all $\phi \in \Gamma.$
First question: I feel that the second property is often skipped in textbooks, but don't know why?! To me, it seems to be similar to a Hausdorff property in $M/\Gamma.$
Now, we showed that such a group $\Gamma$ implies that $M/\Gamma$ is again a manifold and the projection $\pi: M \rightarrow M/\Gamma$ is a covering map. In this sense $\Gamma$ can be regarded as the group of deck transformations. If $M$ is simply connected, then this group can be also considered as the fundamental group of $M / \Gamma.$
Second question: If I understand this correctly, then the converse also holds. $M/\Gamma$ is a manifold, only if $\Gamma$ acts properly discontinuous on $M$?
Third question: In this thread Lee Mosher argues that properly discontinuous is not sufficient to conclude that $M \rightarrow M/\Gamma$ is a covering map (see his comments). Is this also true for my definition? Actually I don't understand why free action is not a corollary of my first part of the definition, cause it just means that the only group element that is allowed to have fixed points is the identity?

