Yes it is- all you have to do is set up a connection file on the virtual PS2 memory card on the hard drive, just like you would set one up on an actual PS2.
Yes you can although you may need the PS2 data download from PSN to make it work. I was checking today and found that that it has been moved to the last tab on the PSN and you have to look under the P to find the download now.
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