I used these settings when I was shooting a bit of basketball, admitedly in a pretty well lit stadium:
BBF, 135mm, manual exposure, auto ISO, f3.5 or below, shutter speed 1/800th sec, AI servo, single point AF, or expanded, CWA metering or spot metering depending on the target subject and how difficult the lighting is. If the lighting is really tricky but constant may set ISO manually too.
yes, but indoor sports can have difficult lighting -- at least an f/2.8 telephoto lens and full frame would be better