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I don't know. I would imagine that it'd be easier moving between locations in the same firm than moving to another firm entirely, but that's just an assumption.

Yes, transfering is possible. It might be easier at some firms than others. Some firms might make you wait until there is an opening (ie. they are looking to hire a lateral) or they might make it easier for strong performers and harder for weaker performers. I would imagine it would be harder in this economy. Last year I was working for a big firm and knew several associates who had changed offices. I also knew an associate who wanted to change offices, but the firm said they couldn't accomodate him.

Depends on the firm. My friend and his wife are both Biglaw at different firms. He was transfered (involuntarily) to DC. Her firm allowed her to transfer to their DC branch no questions asked after she tied off her ongoing work projects. I had a different friend who worked in Tampa and wanted to follow his mentor to the Atlanta office, but his firm wouldn't even consider it. Hope you like anecdotes.