Drag / scale sketch entites inside block?

I have a question about blocks that are inserted into a part file. Can the sketch entities inside the block be dragged or scaled? Does the block need to be exploded in order to drag or scale the sketch entities?

Concerning administration of blocks, does SolidWorks have a standard design library of blocks? If not, where do you typically store the blocks you are creating (example: template directory, etc.)?

SolidworksSketching