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Both of your questions can be answered using the SMS/MMS app called Handcent SMS it is available for free in the market. If you have any questions with how to set it up feel free to send me an email and i'll be glad to help
The standard Droid texting also has a talk to text feauture. I use it quite frequently when driving. Yeah...it doesn't always come out accurate, but I've found it to be helpful in certain situations.
When texting someone just click on the little microphone at the bottom left of the virtual keyboard. You can also customize your voice and speed settings under menu -setup