A question of Fossils.

[Android17a]

I'm pretty sure the answer is a no, but say in your starting hand, you have no true Basic Pokémon, but you have got a Claw Fossil in your hand. Would it be legal to play the Fossil as your lone Pokémon, or would you be forced to Mulligan? Likewise, what if you lost your active Pokémon, and had only a Fossil on the bench? Would you then lose, or would you be able to play on until the Fossil was knocked out or you got a new Basic?

 

[PokePop]

With the new Sandstorm edition rulebook, it would be legal to choose to place your lone Claw Fossil down as your starter.

A bit dangerous, but legal. You could also choose to Mulligan, if you wanted.

As for your second question, once a Fossil Trainer is in play, it is treated as a Pokemon in all respects (except for not giving a prize when KO'd. You would continue to play.