1. Yes
2. Yes. I would try this first.
3. Possibly, but probably not since you said "the car is running great; no loss of power."
It could also be carbon buildup around the valves. Do a search on this forum for "Seafoam" or take it to a pro to have the carbon removed from the engine.
Also, get that timing belt out of there. It could break at any time and leave you stranded. It is on borrowed time. I don't remember if the 3SFE engine in your car is an interference or non-interference engine. If it is an interference engine and that timing belt breaks, you could experience severe engine damage; valves hitting the tops of the pistons and destroying the engine. Do a search here on "interference engines" to check for certain. Either way, change that belt out.
Here's a good site to check on whether your engine is an interference engine or not:
http://www.gates.com/downloads/downl...older=brochure
Mike