Are you absolutely sure it's dead? There are tricks to getting 10+ year old disks spinning again. One is to remove the drive from the Mac, put it on the floor (or you can do this in mid-air), and forcefully rotate it from 0 degrees to about 45 degrees. What you'd be doing here is trying to get the spindle unstuck. Most of the time, that is what the problem is.
I'd try this if you have lost data on that hard drive and want to see if you can recover it. Otherwise, don't bother.
Yes, but makes sure you choose Mac OS Standard/HFS and not the Extended/HFS+ format!
Right. Here's Apples Doc on Macintosh: File System Specifications and Terms