Nope, you can use the order of the letters however you want. You can only use the amount of letters given. The example also adds other words you can use with Hogwarts ^_^
Yes, English :D
They don't have to be HP related. They do need to be real words.
Gryffindor (70): Chook - 10 points Becca - 10 points Icarus - 10 points gatorgirl - 10 points Paddy - 10 points Ambition - 10 points Deutschland - 10 points
Slytherin (200): MerlinPendragon - 10 points Nik - 10 points Fable - 10 points Starling - 10 points Arkham - 10 points Evelin333 - 10 points Anne - 10 points Juice - 10 points Die - 10 points furiousflamewolf - 10 points Rookie - 10 points Twilight_Wanderer - 10 points QqQ - 10 points Moonfox - 10 points ZoeNox - 10 points Poppet - 10 points Beren - 10 points Riptide - 10 points Nomad - 10 points leafling19 - 10 points
Ravenclaw (80): Raven - 10 points Chrome - 10 points Pac - 10 points Cutie - 10 points Lazuli - 10 points Neville - 10 points Junie - 10 points Keliora - 10 points
Hufflepuff (50): ibook - 10 points Saved - 10 points Luck - 10 points Sauvage - 10 points Hunger - 10 points