I believe either one will work, but I'll defer to others for a 100%. The cable with all the pins has the ability to pass audio, but the MBP doesn't provide audio on the DVI port.
If you connect the cable when the MBP is sleeping, the 2nd display will show up on wake (restart isn't necessary). You can select the resolution through the Display preference pane. The relative position of the display to the MBP's screen can be set there too - just drag into place. If you want the external display to be the main display, drag the menu bar to it (also from Display preferences).