The reason for incline is to emulate the outdoors, because you know when you are running outdoors, the SURFACE aren't FLAT! && I'd have to disagree with Streamline about screwing up your ankles. I think in general, any exercise that involves utilizing your feet in general, has a possibility of injuring your ankles... I've sprained my ankles several times in the past from basketball, running, etc. Just make sure to stay "concentrated."
If you are training on a treadmill, your incline should always be at least 1.0.
&& the thing about incline is, the higher the # , the more work your body will need to run up. Like running up a hill for instance. Treadmills are great if you are training to run up hills/mountains in a timed situation. IMO.
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I am afraid I cannot answer your question about running in heat/cold, but from my personal experiences, if i ran in the cold, I seem to be generating alot of heat from bodily movement LOLz
The idea of adrenaline rush comes to play
I hope what I've said has helped you.