The scenario is correct. [ame="http://en.wikipedia.org/wiki/Mir"]Mir was always in an ISS like orbit[/ame]. The Mir in the default Orbiter installation was moved to a lunar transfer style orbit.
Nope. If it were the Russians wouldn't be able to reach it and that's one of the reasons the ISS is in it's current orbit.
You can change the orbit of Mir in the scenario by copying the orbital elements from one of the default orbiter Mir scenarios but you'll find launching to it from Baikonur and KSC interesting though!