Answer 1:
the creators of the Hot Potatoes, Martin Holmes and Stewart Arneil, have said they do not plan to upgrade and maintain Hot Potatoes software, but they do continue to share their excellent advice and give support to users via the Hot Potatoes Users Group (Yahoo Groups). I have successfully installed and used the software on Windows 7 and 8.1.
Answer 2:
You can export the Hot Potatoes exercises straight to a SCORM-compliant file, which you can then add to administer using Moodle's SCORM module