Yes Harry dies in the last part. Either Lord Voldemort or Harry had to die, but when harry actually won the magic battle with him, he lost all of his power too. Although Harry was using all his powers for good purpose, they were voldemort's and therefore when all the power of voldermort destroyed completely, harry died too.
Until I have read the book, this is just a guess, but I say probably not. I would not make sense for Harry to actually die. However, in the world of magic, anything seems possible. In that light, there are a number of ways I can think of that Harry could be "killed" without dying. In fact, one of the central themes of the series is that Voldemort cannot be killed, due to his soul-splitting horcruxes. Remember that Harry seems to have obtained some of his abilities from Voldemort, so maybe Harry will create a horcrux also. On the other hand, since Harry is the hero of the story it is possible that he will sacrifice himself in the end to defeat Voldemort. I just don't think that the story could end that way, since most people would not be happy with that for a finish.
