1) More often than not it is done on a grinder. Grits vary. Some people use a rough (60 grit) stone to achieve the rough shape and then move to a finer grit for the final sharpening. I think the most popular grinding wheels are white (quite soft, has to be used on a slow grinder), ruby (harder, that's what i use) or CBN (cubic boron nitrate, any speed, very efficient, very expensive, but gives excellent results). There are also sharpening systems using sanding belts: the Robert Sorby is an excellent exponent of that category.
2) I presume you mean cutting rods to length: unhardened HSS steel can be cut with a suitable hacksaw (but it's hard work). For the rough cut (in an amateur workshop) I would recommend careful use of an angle grinder. Hardened HSS will need an angle grinder (and some patience and muscle).