A. Yes, definitely apply, but be honest about your skills. Many companies will post a wish list of requirements but they're really looking at only certain core requirements as absolutely non-negotiable.
Some companies' wish-list job postings are pretty entertaining. In one listing published in 1996, a company was looking for someone with 10 years of NT experience when NT had been out only a few years!
Often these extensive skill requirements are coupled with a very low salary. Another listing required several years of experience in NT, Exchange Server, SQL Server, UNIX, etc., and offered a salary of $45,000. In the real-world marketplace, pros with these credentials command $90,000 or more per year.