-Yes, there's a hack for it available here on the site.
-Yes. You can try it out at the gallery here.
http://www.vbadvanced.com/gallery/
-There is an option to allow users to FTP images, but it would require that you set up an FTP account for each user that needed to use it. (useful if you have a few users who will be uploading a lot of images). Otherwise, they will have to use the form method. (And you can choose how many files to allow them to upload at once.)