When referring to a specific army, such as the Army of Virginia, or the Army of South Vietnam.
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When referring to the rank itself, such as Captain, Major, Private or Admiral, it is a proper noun, and should be capitalized.
No you do not need to capitalize all letters, but the rank typically is in all caps on correspondence. I have been in the Army many years and have always gotten the mail no matter the font or Capitalization.
When refering to an army as a body of soldiers, the term 'army' is not capitalized. But when using the term as a reference to the U. S. Army, it is a proper noun and becomes capitalized. It is the same with the abbreviated names of the other military services. The terms (i.e., navy, Navy, air force, Air Force, etc.) can be used either as common nouns to refer to organizations of particular types of war fighters or as references to the name of specific military services of the United States.
yes
US Army, British Army, Canadian Army, Free French army, Polish Army, and the German Army
The singular possessive form is army's, for example: the army's position.