1) The validation failure is stored in a session. the session is cleared when the when validation passes. if you select the validation server behavior and go to code view, it will have the validation code block highlighted, about the 3rd line is the line that sets the failure session, it will look similar to:
$_SESSION['WAVT_index_Errors'] = "";
in this example, the validation is being applied to a page named index.php. you could add the following at the bottom of the page to clear the session:
<?php if(isset($_SESSION['WAVT_index_Errors'])) unset($_SESSION['WAVT_index_Errors']); ?>
2) I would use the Unique database value validation for the permalink to prevent the same entry, the users would need to make sure to enter unique company names, perhaps add the state / province:
Widget Corp MA
vs.
Widget Corp NY