1 as far as i know, ranges for weapons on overwatch are worked out from where the charging unit starts its charge, so in this case, if you were more than the flamers range of 8" away, it would not get to overwatch.
2 Correct, i believe that its in the designers commentary where they say that you may pile in to other units you did not declare a charge against although you cannot make attacks against such a unit in that turn. this is why you can declare a multiple charge though if you do all target units would get to overwatch. might be in the faq but this has been covered.
Hope this helps
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