1. Seems when he returned from the dead (during Chaos War) he came back 100% human
2. It was his last appearance. No, she actually returned during World War Wendigo and she was back on the team...until Alpha Flight semi-disbanded where some members became the new Alpha Flight space program let by Captain Marvel (Aurora, Puck and Sasquatch are on the team). That story was the last time we saw James and Heather