Directories and posts in a Categories

I have a question. Is it possible for wp1.5 to show blog post (as in like the index.php) in a seperate directory from your normal wordpress file. I want to keep my base level directory nice and orderly so is it possible to keep the scripts other files ina wordpress folder.

Also is it still possible to show a posts in just one single Category in one page (like lets say you want this page to show the news from site updates)? I know it was possible in 1.2