Yes. yes they do. https://adwords.google.com/support/bin/answer.py?answer=54411&topic=13175 But be careful - they have a limit on how many question marks you can use in a day
Yes they do and they have done so for over a year now, infact well over a year. They also pay CPM with their adsense program.
It's pretty good too. I find a lot better results with the CPM network. You just have to know the best ways to use it. Watch your ads closely when you first set them up. I've got CPM campaigns averaging $0.03 a click. It allows quite a bit better targeting as well.