I've never been involved in a data warehousing projects just have a general idea of the schemas and methodologies; But
1/ Sounds like the "snowflake" model combined with a relational lookup model
2/ Both, by the sound of it.
Any DB relationship design should start with a schema diagram showing the layout and direction of data flow
have a look at the Sybase WharehouseArchitect Manual to get the general idea of wharehouse schemas
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