Yes you need an internal headset, some thing like this http://www.chainreactioncycles.com/Models.aspx?ModelID=6183
that one is what is known by some as the Cane creek standard, which is more usual on mtb’s than the Campagnolo standard which is usually found on road bikes, however it’s not a hard and fast rule! Best bet is to check the park tools website which has a guide or go to your lbs.
As for the BB do you mean the width of the shell? As far as i know the diameter of the threads is standard for a bike of that age at least. BB shells are either 68mm ot 73mm wide, i would have thought that one would be 68mm, but easy to measure.