1) It's very possible.
2) This is probably what happened. And me thinking I would see an immediate update to my wallet didn't help. So I switched wallets from coinbase to bitcoin-qt. I probably didn't give it enough time. How long does it typically take for auto-exchange to show in a wallet? Right now everything seems to be working ok using cryptsy, but I'm going to give the auto-exchange another shot later.
My hash rate is averaging about 1100k on two asus 290x dcu2. I know, it's very disappointing. I was able to get the hash rate up to about 1300k, but I wasn't comfortable with the temps. I haven't heard about anyone having good mining results with these cards. But to ease the pain, I keep telling myself I bought them for gaming, not mining.
With this hash rate you should be able to get above 0.01BTC/day.
It works like this. You enable auto exchange. Then wait for a second payout window after that. E.g. you enable auto exchange 1pm EST, first payout window will be 9-10pm EST the same day, but you most probably don't have enough to be payed as you have mined just for 8 hours, and it also takes time to trade. So, you wait for the next payout window, that is 9-10pm EST on the next day after you made a settings. At this point you will most probably be paid. Still there is a possibility that exchanger lags and things like that, so you may need to wait for 3rd payout window (that is of course 9-10pm on the 3rd day after you made your setting). On the other hand, if you have some good balance already, you may get a payout on your first payout window.
Also after 1st payout it will be more predictable, as you will have full day between payouts.
Also up to the moment I was getting my payouts at least once per 2 days without problems.
Bottom line: enable auto exchange, make sure you really did it, and wait for 2 days at least, better 3.