Firstly, has any one used this device
Plenty of people have.
if so, is it compatible with all the ethernet example sketches?
Which examples are you referring to? If you mean the ones that come with the Arduino Ethernet library, then the answer is no. That library works with the easier-to-use WizNet 5100 based shields.
There is an EtherCard library that works with your ethernet shield that tries to hide the complexity of using that shield.
Second, is there a specific method for setting up the static IP address on the router
Of course. But, it depends on your specific router and network configuration (home, school, business, etc.).