Yes to both questions, using my Windows credentials I can query the linked server straight out of mgmt studio, here is the create statement for the linked server.

/****** Object: LinkedServer [AUTO2K] Script Date: 05/08/2012 12:18:13 ******/

EXEC master.dbo.sp_addlinkedserver @server = N'AUTO2K', @srvproduct=N'Oracle', @provider=N'OraOLEDB.Oracle', @datasrc=N'AUTO2K'

/* For security reasons the linked server remote logins password is changed with ######## */

EXEC master.dbo.sp_addlinkedsrvlogin @rmtsrvname=N'AUTO2K',@useself=N'False',@locallogin=NULL,@rmtuser=N'AMSCRYSTAL',@rmtpassword='########'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'collation compatible', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'data access', @optvalue=N'true'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'dist', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'pub', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'rpc', @optvalue=N'true'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'rpc out', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'sub', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'connect timeout', @optvalue=N'0'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'collation name', @optvalue=null

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'lazy schema validation', @optvalue=N'false'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'query timeout', @optvalue=N'0'

GO

EXEC master.dbo.sp_serveroption @server=N'AUTO2K', @optname=N'use remote collation', @optvalue=N'false'