Yes, there where about a platoon (20 men) joined from the POWs. A handful where given the choice of fighting the Russians with the SS or staying as POWs, some choice many and I mean many laughed it off, but the original few where turned into recruiters and sent to special camps where a few POWs where housed, then the recruiters would drop hints and try and turn the soldiers against the USSR. They didn't see any action and where short lived but for a time lived like pop starts in Berlin as a Propaganda tool.
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Many Confederate units wore blue uniforms. In many cases they were excess from Federal caches and stations in the South.
Not very many, however there may be a few, depending on your definition of "good". The SS is associated with genocide & other war crimes. After the war, few Germans were willing to admit they even served in the Waffen-SS (ground combat forces), and very few would admit they served in the SS Concentation/Death Camp guard units. The SS Camp guards were subject to being tried as war criminals, because of the genocide done there. The Waffen-SS soldiers & leaders could be prosecuted for war crimes if they participated in the killing of civilians or POWs in their custody. Many Waffen-SS units did commit these war crimes, especially on the Eastern Front. There is much more info available in books & internet.
Yes. Midget subs.
The military is neutral, they serve the elected commander in chief.
if any, they were American, Canadian or British citizens