Yes to both questions!
It will drive active speakers via the powerlink sockets, or passives using the built in amplifier via the speakerlink connections.
The Beomaster 3500 was designed to be used with the Beolink 1000, so no problems there.
The only thing I would suggest is to rebond the glass control panels, if it hasn't already been done. The original tape used seems to perish like the older speakers foam surrounds do. Replacement glass panels are no longer available from B&O, so make sure its stuck firmly!
I just picked up a Beosystem 3500 for a good price, and am currently half way through this process.
Cheers,
Ben