1) You can set your paypal account to send email notifications when an order is placed. see this link for details:
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PayPal offers several automated email notifications to keep you updated on your account activity. You can choose to receive these emails automatically when:You receive money
Special notifications or surveys are sent to customers
You receive a Website Payment or Auction Logo payment
Here's how you can view and edit your notification emails in your account profile:
Log in to your PayPal account.
Click Profile.
Click My settings.
Click Update beside "Notifications."
Check or uncheck the boxes under Payment Notifications according to your preferences.
Click Save.
You can also change your settings to stop receiving payment notifications by following these instructions.
2) yes, Paypal will send the customer a receipt.
(since we use paypal standard, I guess UniversalEmail receipt is not available?)
with paypal standard, you would need to configure an IPN Page. when paypal completes the transaction, it will make an IPN Post to a page you set up. on the ipn page, you can trigger sending the email.
there are many threads throughout this form dealing with the limitations of paypal standard, and IPN.
