1. If theres not a known network that you have connected too manually before, the touch will automaticially connect. If there is not a known access point, the touch will give you a little popup dialog box to select networks if you try to use a feature or program which requires internet access.
2. Again, if you have already connected to it with the WEP code once before. But if you never have, it will not connect automatially. These codes LAST in your touch. Mine has gone through countless restores and jailbreaks and it has kept those codes, including the one to my cousins wireless network from november of two years ago, when i bought it. Even through the white scrolls of death!😱