Yes, sterics account for the relative stereochemistry. Yes, the reaction is diastereoselective, but not enantioselective.
Actually, though, I'd argue that you'd have a better case for diasteroselectivity with a carbanion over a carbocation. Carbocations are always sp2 (and therefore trigonal planar and therefore achiral), but non-resonance stabilized carbanions are inherently sp3. If the carbanion were not resonance stabilized, it would be sp3, and you could see diastereoselectivity. Although if that were the case, you might expect the methyl and vinyl groups to be anti in the carbanion... that would put the methyl group and hydrogen syn to each other in the product. see here:http://www.chemicalforums.com/index.php?topic=31905.msg121887#msg121887
Thanks for the words of encouragement
Part 2: These intermediates are useful in the rapid construction of stereoid skeletons. Step two involves the heating it. Provide the mechanism and name the steps involved.