The last time I played with a waco tablet the pen had to be used on the tablet it self. Sensors read the X/Y position of the pen tip, then you have the buttons on the pen that are independant of the tablet. As to the rest of your question I haven't looked into it.
Yes and no. Yes, it's like a tablet PC in that wherever you touch the stylus is where the cursor will be, but it's not a good comparison, because the tabletPC is more like a giant PDA with instant feedback (i.e. easier to use initially).
The tablet takes some practice to get the feel down.