Yes, when the user starts picking a fault in the Inline direction, they can keep picking the fault in other directions such as Xline, Time Slice and even on Horizon Stacks.
Yes, it is possible to merge two or more faults using the Faults Merging/Splitting tools available from the Fault toolbar. It is also possible to split a fault which has been previously merged.
Yes, the user needs to click on the EDIT icon of the Fault picking toolbar and then double click on the fault that they wish to edit. They can add, move or remove fault sticks.
PaleoScan can deal with reverse fault by generating two horizons for the same event. In case of a steep dip, everything works fine. In the case of a low angle fault, PaleoScan can handle the reverse fault if there is a low throw.