Oh boy yes. You can easily kill hundreds of your own men with artillery if you aren't careful.
You will be essentially useless in melee without bayonets (when fighting an opponent with them) Once you have ring or socket boayonets your troops will be much more effective in combat, especially against cavalry. If you fought a teched up Euro army without bayonets on your side you will probably lose.
Yes they can, doesn't always happen though.
Group all your ships. Toggle their formation into line abrest, essentially a big long line. Now when you select the group and tell them to move they will follow the lead ship in a kind of conga line. It makes handling them much easier. Never use broadsides, they are innacurate and pretty much useless outside of very specific situations. Just let your ships fire at will and you will be fine.
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