1) Yes, I would say so... although, I could also see an argument for having them be outside the CM/rank limit (depending upon the power level of the campaign).
2) Had not thought along those lines, so when ruling, I try to favor the player if it won't unbalance things, so I see no problem with making it up to 6 points worth of weapon kata (which would allow for them to pay more CP to fill it out if he wants a combo that doesn't fully add up to 5 points.