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Yes, Buds even sells it as an add on item for this particular rifle.

Yes steel works fine just makes the rifle action get dirty faster

Yes, steel cased ammunition will work fine. You should note that steel will expand/seal less when fired and will build up soot due to blow by about a 3rd quicker than brass cased. Keep it simple and fire one or the other (brass/steel cased) per shooting session or do a quick basic clean when switching from steel to brass cased. Happy shooting Irv.

Yes, any 7.62x51mm NATO or 308 Winchester will work quite well. See here: budsgunshop.com/catalog/product_info.php/products_id/712000182