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Chooser of the Slain:

Should the Rune Priest make a shooting attack at at target that has line of sight to the Chooser marker, he may treat his BS as one higher then normal.

Would normal BS when snap firing be considered BS 1 and thus the Chooser makes it BS 2?

Chooser of the Slain would not help using snap shots.
Stat modifiers are applied before fixed values (page 2 "Modifiers") so in this case the Rune Priest would have BS5 (4+1 for chooser) then it would be set to BS1 (snap fire)

As above. They have a fixed rule for all fixed value vs modifiers interactions now.

Just working the argument here, but is the Chooser applying a stat modifier with the wording of the rule?

When making a shooting attack against a target (flier so BS1 kicks in for the Rune Priest), if the Chooser has LoS, treat his BS (BS1) as one higher then normal (BS2).

Snap fire applies after bonuses, much like how unwieldy applies after all initiative bonuses. Banshees masks would make me I10, but unwiedly on an axe would make me strike at I1.
So you would apply +1 BS, and then resolve the shot at BS1.

No chooser of the slain applies to the same argument that tau targetting arrays might supply a BS bonus to snap fire, the set modifier of snap fire is at BS 1, were as chooser simply adds +1.

So you go multipliers, then add/subtract, then set values, which makes the rune priest shoot snap fire at BS 1.