First of all, this either belongs in Audio Assistance, or maybe even Audio Talk. But to answer your questions.....
1. The sock acts as a ghetto ass pop filter. It softens your Ps and Ts so they don't sound as hard and make the popping sound that so many "at home" rappers have when they record.
2. Yes....you can record three words and stop, then three more and stop again, then finish the line. You can do the whole song like that. The only problem is what Indeph said. No matter what, you have to match the intensity, pitch, even breath control. It's really hard to do, so I suggest you do your recording in multiples of 4. This is the easiest way because most of music is related to the number 4. There are a standard 16 lines in a verse, 8 lines in a chorus, shit like that. So if you stick to recording in multiples of 4, you will get a more natural feel to your sound. I personally try not to record anything less than 16 lines at a time.....but that's just me

™