A. The answer is NO and YES, you cannot rollover the employee contribution to 401k plan to an IRA account while still employed by the same plan sponsor. However, you can rollover the employer match portion of the 401k plan to a IRA!
Knowing this exception could be very helpful. For example, if you have contributed to your 401k for a few years, and have accumulated a sizable employer match in 401k. Now you plan to buy your first home and need money for down payment. If you take money out of 401k, there will be both income tax and 10% early withdraw penalty.
However, you can rollover the employer match to an IRA (if you don't have IRA yet, open one first), then use the $10K first time home buyer exception to take $10,000 out of IRA as the down payment. Your spouse can do the same, which means you will have $20,000 ready as down payment!
Note that not all companies allow this "in-service withdrawal", you can contact your 401k provider and company HR department to find out if they do for your 401k plan.