Hi Mark.
1) dunno, but I think it's just plain ol' java moss
2) they're being raised mainly on frozen bloodworm
I can get live bloodworm from a nearby bait shop, but since they thrive on the frozen type, I don't think it's worth taking the risk of introducing diseases. Having said that though, I do occasionally give them live tubifex, but only sparingly (again, to minimize the risk). I recently had my Notophthalmus larvae wiped out, and I'm pretty sure it had to do with something that hitchhiked in with the tubifex I was feeding them.