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1. Delegation typically means that the person does not have to have the authority. However, the fact that you are in a different OU may be causing the problem. Also please try changing the profile "WF: Notification Reassign Mode" to Delegate. And make sure that vacation rule says "Delegate"; not transfer.
2. There is no restriction as such. But most (if not all) of the reports don't come over properly in Excel. Those reports are text without any delimiter. So when you open in excel, all the lines appear in columnA. A report will come over properly in Excel if it has delimited columns.
Hope this answers your question
(BTW, please avoid having two unrelated questions in the same thread)
That was extremely helpful. Will also remember about unrelated subjects on a single thread.