I can answer some of your questions.
When you install the CRM client for Outlook, CRM can be accessed from within Outlook. You will see a new set of folders that points to the CRM records. The records are stored on the server and not on the end-user's machine. However, a user can also select
Outlook contacts to be synchronized with CRM.
CRM does not create new folders in Outlook for these contacts. Outlook contacts that are tracked in CRM will be kept synchronized so that changes may be made to either the Outlook or CRM copy. Only contacts in the default contact folder in Outlook can be
synchronized.
CRM does not synchronize account to Outlook records.