Question 1 - I was able to accomplish this and even leverage the SolarWinds Application Pool - I may move away from this
Question 2 - I found out that SWIS was not breaking with inheritance disabled for the system.serviceModel in the SolarWinds web.config, but instead some of my queries where breaking it
Question 3 - I tried and tried but in the end I enabled Auto Windows Authentication Login in the NPM Web Settings and this allowed me to pull the Login.Identity information correctly in my Web Application.