I do a fair bit of this kind of thing as I've recorded some of my old vinyl into mp3s and such.
If you right-click on one of your tracks, select "Get Info" and then select the "Info" tab, you just need to edit the "Artist" and "Album" fields to be the same, and then they'll be grouped together. You can use the track number fields to sort them to play on the right order. I think that does the first bit.
The best way to do the second thing would be to use playlists. Just drag one of the tracks into the left-hand margin to create a new playlist, rename it to whatever you like, then just drag the extra tracks you want in there too. The playlist will sync onto your iPod, and it's a convenient way to burn your own compilations to CD etc.
I think I understood what you're after - but drop me a PM if needs be