US Airways Dividend Miles - Standby after upgrading with miles, and inter-line baggage question

Hi, I have 2 questions:

(1) I upgraded a relative on a flight, but I think that the relative should try to go standby on an earlier flight.

Since the relative is now in first class, are MoveUp fees waived? And will she be eligible for a first class seat on an earlier flight, too, with no hassle?

(2) The relative is flying on US to Boston, and then on Icelandair to Iceland. When the relative checks in with US Airways, can the bags be coordinated so that they go all the way to Iceland, or will she need to pick them up and re-check them with Icelandair? I would think that Icelandair offers online checkin, so she will probably have checked in for all flights then.

Thanks!

If your relative wishes to try for an earlier flight then she/he has to pay for the standby fee, unless she/he is a a preferred member. Being on the standby list does not guarantee a FC seat since it is a new flight and FC seats would normally be available based upon preferred status. I do not know abpit the interline arrangement between US & IcelandAir.