it is quite a bit technical to do this...I am a wordpress designer if you like I can do this for you. PM me if you are interested.

The simple answer is yes - the template you are looking at uses javascript (jQuery) for the slider. This template has an interior menu to populate the slider, and obviously it would no longer work - you would have to hand-code the XML that goes with CU3ER. Also, the CU3ER animation would appear smaller of course :-)

The CU3ER slider is in flash - but the only "hard" part is replacing the jQuery/HTML Div (and underlying PHP) with the CU3ER div. Feel free to PM me, but just about any WP templete dev could swap it out.

if you read the documentation based on the theme info, i believe it will be ok for everything. beside it you can adding some plugins to support everything u need with wordpress.

Yes it is possible, however you are best getting a wordpress developer to do this for you if you are not very familiar with editing code in WordPress themes.

The CU3ER animation would also require CSS editing in your theme to get it to sit nicely in the original space of the original slider.