ChordsAndLyrics will format staffless lead sheets.
Yes. Adjust the CSS in your theme. Chords are wrapped within div#cnl div#chord strong tags. Lyrics are wrapped within div#cnl div#lyric tags.
Yes. Beginning with version 1.7, European chord convention is supported. A new option in the Reading Settings allows enabling display using aHcdefg instead of abcdefg. For entering chords in a post using European chord convention, add the european=yes argument to the chordsandlyrics short tag (eg. [chordsandlyrics european=yes])