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Hey!

Regarding #1, I think you've already received some great answers.

As for #2, I have a small piece of advice.  At the start of my campaigns (and every few "levels-up"), I ask the players to write down three things they want for their character.  Two of them should be minor things (magic items, a cabin in the woods, a specific stat bonus because of family history, etc.) for their character to receive over time.  The third (and most important) thing should be something epic and story-oriented ("I want to lead an army into battle," or "I want to defeat my uncle in combat and take my rightful place upon the throne of Dragova.") to happen in the farther future.  

Try it out and see if it helps to get your players more involved.  If anything, it will give you new ideas for some awesome plot hooks!

Good luck!