There is a little piece on the back for tucking the cover in so you can set it down and watch it the long way. When you open it up all the way like a book the cover is thick enough that it will sit up like a book would.
No, it only stands up in landscape mode. If I found a fault it would be this. Also, when using this stand, you cannot have it plugged in to power. I found this to be true with most cases however. This case does fit snugly however and the kindle will not 'slip' out accidentally.
No, it only stands up horizontally but it is at a great angle for viewing. I realize you are probably thinking about reading books. It isn't quite as good for reading but it isn't really bad, just more page flips. It is a nicely fitting case with good protection though.