1) Yes. In fact, the shop I used to work at was a Delphi shop and that was one of the reasons for using TestComplete, both that it supported Delphi as well as that it had DelphiScript support so that our automators could use the developers as reference folks if things got sticky.
2) By default, Delphi applications starting with, I believe, TC 7, are automatically "open" applications. The GUI elements are available with some general properties and such for interaction. To get deeper into the app, there is some work that needs to be done in the compiler to utilize the Debug Info Agent. Information on how to use it can be found
http://smartbear.com/support/viewarticle/12507/Hope this helps!
P.S. As a suggestion, for searchability for other readers of these forums, it's a good rule of thumb to create a new post for each question. These two questions are close enough related that they could be the same post but they should have been used to start a new thread.
Happy automating!