1. Yes.
2. You can try the lazy noob pack. There are 3 different tilesets that you can choose between, though I prefer ASCII
http://www.bay12forums.com/smf/index.php?topic=59026.03. Even though the videos are from 2008, a lot of the instructions still apply. As far as I know, the biggest change is the military screen.
http://df.magmawiki.com/index.php/DF2010:Military_interface4. This is mostly a matter of choice. I personally like 2 squads of axedwarfs for general combat, 1 squad of marksdwarf to back them up, and 1 mixed hammer/spear/sword squad for miscellaneous fighting.
Don't be afraid to ask questions!