1) It IS an ex BTC miner.
2) Probably not, CPUs are extremely terrible at mining LTC
3) It is, cos he's finding blocks
4) FPGAs are hardly faster than GPUs, even in BTC land. THey cost just as much if not more, but they take less power to run. It's their only advantage.
About this, it's possible:
Only needs 5 kh/s per infected PC : 400,000 infected pc * 5 kh/s = 2 000,000 kh/s, and is very secure than more than 100 000 pcs can give more than 5 kh/s
