Yes. The extension allows for complete customization by writing macros in Visual Basic for Applications (included with ArcGIS Desktop) or creating extensions for ArcGIS Desktop developed in standard development environments (VB, C++, Delphi, etc.).
Data can be updated as close to real time as your system allows. Data rates depend on the communication links to the data applications you are using, server speeds, and network speeds. The display rate on the screen is limited to one refresh per second; however, each refresh may update multiple objects.
Tracking Analyst supports all supported ArcGIS vector formats. However, all data must have a Time & Date field in it. Usually this is in the format MM/DD/YYYY HH:MM:SS; however, numerous date formats are supported.