1) Yes, but many DM rule that you can use that only once per Metamagic feat (so if you cast an Empowered Maximized spell -normally +6- you get a +4 Level, but if you cast a double Empowered Maximized spell - normally a +8, you get a +6 instead of a +5)
2) Not at all, read the entry "This can't reduce an increase to less than one level", so all the Metamagic Feats that give a +1 spell level are not affected
Anyway, IMHO, is absolutely futile to ban the MoF... ...if you want to impose balance, than you have to ban also DotF, TaB, FRCS, quite an amount of spells, the Cleric core class etc etc, so it's much better to talk to the players and decide one by one every PrC, spell, or whatever else... ...besides, it's a very well written book if Faerun interests you...