Welcome to FlyerTalk. This is a great resource...you definitely came to the right place. Here are some answers to your questions:
-You can upgrade virtually any fare on American Airlines with miles/electronic upgrades. The only exception is award tickets and certain consolidator/deeply-discounted tickets.
-You can use miles to upgrade the entire itinerary, no need to use electronic upgrades.
-As long as there is inventory in the correct fare class, you can confirm the upgrade when booking.
Hope that answers your questions.