1. The general consensus is you should replace the shocks at the same time you change to lowering springs. Otherwise, you'll wear out the the shocks quickly.
2. ... not sure where in the east-end you can buy springs and shocks, but don't count on spending that little if you include the shocks. I've got practically new Roush springs and KYB shocks you can PM about if interested.
When you're considering installation I know a place in the West end that has experience installing these on our cars (did mine twice) that charges around $350. In the end, expect to pay $800-$900 for a proper job, if not more.