1. Answered in the post above.
2. Depending on your views of EE, this can be handled in a multitude of ways. EE has an item called a volcanite amulet than destroy water source blocks if it has a source of fuel either glowstone or a klein star with stored emc. The other option is just fill in the source blocks with anything, sand is a decent choice, but I remember watching a youtube vid that had someone using wool as a material for a reversed mold and just burning it when it was sealed in glass, but not sure if this is still viable. Personally I would go the EE route, its much faster and less material intensive.
