1) It extract and copy application into a package that must be run on other PC through PMA to be installed properly. That's why I initially suggested to run it from flash drive - that way you don't have to set PMA twice.
2) I only used it for moving MS Office once and it worked, but I am not 100% sure how it will do on MS Office 7 or with OEM versions. Also OEM version can be a legal mess in that case - but you don't need MS support very often :)
So - you can try - just start with the office and test how it will behave before doing anything else.
3) Never tested it myself thoroughly. I mostly play with PMA to move smaller programs that use Microsoft Installer.
Should check with their support. Logically the problem should be solved somehow cause otherwise moving a program makes no sense.