MS SQL Server Can be used to send Auto Generated Email's - How?

Using Stored Procedure you can do it..

Ref: http://www.howtogeek.com/howto/database/sending-automated-job-email-notifications-in-sql-server-with-smtp/

yes,there are several options:

- from jobs (in SQL management studio) you can configure a schedueled job to do that

- you can configure an ssis package and scheduel it again from jobs in sql

- via stored procedure

Yes It can send emails, http://dba.stackexchange.com/questions/10190/how-to-create-and-send-mail-in-sql-server-2008