Submit Request Set: Options button vs Delivery Opts Button

The Options button on the "Submit Request Set" form contains a section titled, "Notify the following people".  It is my understanding that this is used simply to notify defined users that the request set has completed.  I believe this notification is sent regardless of completion status (Normal, Warning, Error, etc.)  My questions about this button are:
1)  Is my understanding correct?
2)  Is there any way to place "conditions" on when this notification is sent?  (i.e.--only send on Error, etc.)

The Delivery Opts button, however, serves a different purpose.  It is my understanding the Email tab can be used to send output to defined users.  You can enter the information desired in the "From" box, and what you desire in the "Subject" box.  As of right now, the "To" and "CC" areas appear as free-form text entry points.  I anticipate this is because, "...a Simple Mail Transfer Protocol (SMTP) host and port be defined in the profiles FND: SMTP Host (FND_SMTP_HOST) and FND: SMTP Port (FND_SMTP_PORT), respectively..."  My questions about this button are: