#1
So basically when you put effects in an effects loop, where are they applied? Between the preamp and poweramp? Or what?
Dear God, do you actually answer prayers?

Yes, but only in a way indistinguishable from random luck or the result of your own efforts.
#2
I believe that the signal is processed through the amp, then the effects, then out the speakers, if you had a head-effect-cab configuration.
Oh crap!