In answer to your first question, yes. Don't carry it around in a forest or wooden house- at least, not in your normal inventory. It should be safe if you put in in a bag of some sort.
Also, I've heard reports that having more of the ore in your inventory makes more fire. Probably a good idea to drink a fire resistance potion, craft the Salamander's Eye from Xeno's Reliquary, don an IC2 Hazmat Suit, or find some other form of fire protection before you go hunting for the stuff.
I didn't go looking for it. It came to me a meteor craft meteor shower. I have it safely stored in a chest far away from my house, and will definitely put it in my backpack next time I move it. It already burned the wooden floor and ceiling off my house . My walls were thankfully stone. I'm still looking for a new building material.
Good to hear that it is a renewable furnace fuel. That will let me save my coal supplies for steel (weapons and armor, not railcraft stuff). It may also help me in power generation, though I know better lava systems than that.