You'll need help from MSDN, too. Petzold just covers all the basics.
The answer to both your questions is yes!
Andy
P.S. Question 2 suggests you should be using an Edit control for your text, rather than drawing it yourself. Edit controls know how to cut, paste, etc.
See Petzold/MSDN for how to use it (it's described on page 247 of my copy of Petzold.) If you don't own a copy of Petzold already, you should really get one if you want to learn to program GUI apps which use the WIN32 API directly.
For Question 1, as webJose said, the Microsoft common control library provides a Hyperlink control (see MSDN). This allows you create a control for a single hyperlink. Note that it is only supported in Windows XP SP2, Windows Vista SP1, and later.
If you want to include hyperlinks in your text block, things get more complicated. The Edit control does not support them!
Someone has written an MFC edit control that supports hyperlinks, which might provide the required "inspiration" (i.e. nickable code).
Multiline Hyper Edit Control
http://www.codeproject.com/KB/edit/multi_hyperedit.aspx
(codeproject.com, codeguru.com, ... are useful places to go for example code. As people are "self reviewed", the quality is somewhat variable...)