1.  Yes.  You can use IEAK to have the registry key written to disable file downloads in IE.  See this site for the registry information in question:  http://www.winguides.com/registry/display.php/901/  For how to use the IEAK to do this, post to one of the IEAK newsgroups on the msnews.microsoft.com server.

2.  Can't think of a way to do exactly what you want right now.  One way might be this, however...  Open a new IE window - making sure it's resizable by dragging the corners by clicking the middle upper right button between the "_" and the "X".  Then drag that window as small as possible - until it's just a really short title bar and the upper right buttons and that window is sitting on top of your taskbar.  When you come across a link you want to load into that nearly minimized window, right click and hold on that link, drag it down to the little window's taskbar button to bring it to the foreground, then drag it over to the little window where it will turn into a shortcut arrow and release.  You will be able to continue to read in your current IE window, and when you're ready to see that new link, just click the middle "maximize" button on that little window.