(1) Yes - it sounds very strange if one thinks that the separation between two points of space time is just the Minkowskian four-dimensional version of our 3-dimensional distance in space. Well, there are analogies between the two notions, but there are quite significant differences too.
Like distance in Euclidean space, separation is frame invariant - the spacetime separation between two points does not depend upon whatever Lorentz frame you work in. Like distance, the separation can be expressed as a function of coordinates of the points. In Cartesian coordinates the square of the distance from a point at the origin is: root{x^2 + y^2 + z^2}. But in Relativity, the square of the separation from the origin of a Lorentz coordinate system is: root{-t^2 + x^2 + c^2 + z^2}. (working in units where speed of light equals 1 - sometimes, you'll see the time coordinate multiplied by c^2). Clearly, since time squared is subtracted rather than added, it's possible for this quantity to be zero. It's even possible for this quantity to be negative. In these respects, separation is very unlike our notion of distance in Euclidean space.
However, the quantities can be given physical interpretation: If s^2 squared between two points is negative, the separation is called timelike, and a clock that traveled freely in a straight line between those points will measure s units of time as passing. If s^2 is positive between two points then the separation between the two is spacelike, and in a frame where the two points are simultaneous, and a rod in such a frame will measure the (spatial) distance as s. If the separation is null, then the straight line between them represents the path a light beam could travel.
All this shows that one has to be fairly careful in how you read the Minkowski diagram and interpret the invariant separation as a kind of space-time length. The analogy can be very helpful, but it can also be quite misleading.