Energy Conservation in Lighting Equation
Comment: if you make references to book, then it would be good if you could provide references.

To answer your questions:


First, it is quite unusual these days to see people representing colors using a computer byte that is integer values within the range [0:255]. Most people these days use floats, and you will understand why in a moment. When you look at a material in general you can see a shiny part and a diffuse part. Shininess and diffuse appearance are computed using two different types of equation. Let's call the functions that compute the diffuse part diffuse() and the function that compute the specular component specular(). So now you can write:

ObjectColor = Ks * specular() + Kd * diffuse();


Ks and Kd control how shiny or/and diffuse your object is. 

About conservation of energy. In short an object can not reflect more light that it receives. So that means that technically if the specular() and diffuse() function do the right thing Ks + Kd ought to be 1. If that wasn't true you would violate the principle of conservation of energy. In practice, it is generally good to follow this rule though most of the basic shading models are based on simple diffuse and specular models (for example the Phong model) and are not themselves energy conserving, so trying to be purely energy conserving at this level, is like trying to say you can paint a miniature with a paint roller. Forget about it, just try to be more or less in the right range.

ks and kd generally stand for the specular and diffuse coefficients.


if you don't do path tracing (aka don't simulate global illumination) the object won't reflect light from other objects in the scene, just light from direct light sources. So in the old time, in order to compensate for that, they would add an ambient term. In these days in age, this is considered as 'heresy'. Though if you account for the ambient term still then Ka + Kd + Ks should be again equal to 1 (same principle).
Not sure to understand what you say here but all these components are additive. You compute the diffuse multiplied by Kd and then you multiply the specular multiplied by Ks and then you add the two resulting numbers together. And that's your object color at the intersection point.


For an introduction to these topics I recommend you read:

Introduction Ray-Tracing

Introduction to Shading

The Phong Model

In order for you to progress, I personally recommend you proceed by step and don't try to understand everything at once. The problem of rendering and shading is very complex. You need to first understand the principle of light-matter interactions, what is diffuse what is specular and how are objects illuminated (direct and indirect lighting). Once you have these notions you can jump onto shading and understand or learn about the concept of shading model, and what the flaws and strengths of existing shading models (many of them exist).