An accurate answer for number 1, I am guessing Bobrocket has not done this before so he isnt aware of what is and isnt allowed on downloading.
1) Kind of.
If you have a file to download, you are not allowed to open a byte stream to download the file. You can open a reader and read the plain text, and then create a local file, writing that text to it. You can create images using urls etc, this is allowed.
What is not allowed, is opening byte streams to download a file.