1. No, not knowingly, because I would not feel it was a good canidate having potential problems arise. But we have laws about disabilities here and it would never hit a resume.
2. It would be based on their past performance, how long on the job, if they were still on a probationary period... was it effecting their job performace and what they were hired to do. If you can't do the job then I would have to terminate to find someone who could.
3. It would make all the difference in the world.

I am sorry you are having to go through so much BS and it should have never even come to light if you did what you should be. It is just a load of horse snot and my heart goes out to you!