And second question. does the H2 have manual level control?
It does. The really cool thing is it doesn't really matter that much. I've done a bunch of stuff with it set VERY low and with Audacity you can bring the levels up to right where you want them and there is no real dicernable difference in noise floor.
Stay away fron the units internal AGC (auto gain control) if you're recording live music. It will create audible pumping that is all but impossible to get rid of.