This is how I have mine set up...
Internet > modem > router (w/ DHCP) + switch > wire to location > AP
The connection between the router (which has a swtch in it, probably) and the APs is by the Cat5 you installed previously.
Question #1: There will be a configuration menu to set up the AP.
Question #2: Short answer is yes.--
Nothing makes an American want to do something more than telling them they can't.