Technically the service disconnect just has to be on the property but your AHJ may still want a disconnect on/in the building.
Yes that will become a feeder and you need to run the ECG along with a ground. As long as that is the feeder for the whole building, you can use 210.15(B)(6) in a dwelling. (Not commercial)

Last edited by gfretwell; 04/15/11 04:04 AM. Reason: Make the correction Niko pointed out

Greg Fretwell