A. No and no.
If you have a SQL 6.5 dump file then you will have to load it into a SQL 6.5 server first.
If you have a device file then you will have to install SQL 6.5 and then DISK REINIT and REFIT (details in the books online) it into SQL 6.5.
The ONLY ways to transfer SQL 6.x databases into SQL 7.0 are :-
1. Use the Upgrade Wizard. This is the best option. It requires a running SQL 6.5 system to extract from.
2. Use the DTS object copy tools in SQL 7.0 to copy objects from SQL 6.5. Note this doesn't copy defaults/constraints etc.
3. Script the SQL 6.5 database using SQL EM scripting. Re-create it using the script on SQL 7.0. Use BCP to copy the data.