Embedded Database

I have two questions about PostgreSQL:

Does anybody know if it can be used as an embedded database engine within an application,
so the application doesn't have to connect to an external server? (I have looked at SQLite, and
I'd rather use PostgreSQL for my app, footprint be damned.)

And, does anybody know if it's possible for PostgreSQL to run a database entirely in RAM
without saving the file out to disk?

Thanks,
Richard