1. The database is already built for transactional processing to handle multiple users. You will most likely have a single 'user account' that you will use to communicate with the database.
2. There are a couple of ways to do this. Normally you can put the connection string in the web.config and encrypt it. Also remember the pages are compiled, so they won't have direct access to your .net code.
Here's a link on how to do it.
http://aspnet.4guysfromrolla.com/articles/021506-1.aspx
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