Hmmm,
1) So a quick disclaimer...SIS is complicated, and I'm probably wrong about what I'm about to say. Your mileage will vary. As far as I've been told, as long as the vault can update the metadata in both SQL and on an individual DVS, then SIS "can" work. It's very dependant on the items header and body being the same to the vault. I've seen it work where I expected it, and then sometimes not work where I expected it. So I can't really claim to know either way. But still, cabbing a file shouldn't prevent SIS. Now the caveat with that is, that it won't SIS on a closed partition (I believe).
2) Sounds right to me. :)