1) Its the default configuration in all projects you create with Advanced Installer, of course as long as you increase your product version. The next article has more details about upgrades: http://www.advancedinstaller.com/user-guide/upgrades.html
2) This is a standard prerequisite, which you can select from our list of predefined ones. Just select the version you want and Advanced Installer will handle the rest for you. More details about prerequisites here: http://www.advancedinstaller.com/user-guide/prerequisites.html