On the flaxseed it needs to be ground. You can put it through a coffee grinder and store it in the fridge. If it is not kept cold, it goes bad quickly and loses some of it's benefits.
As far as what to do with it. I put it on top of yogurt, in my peanut butter, in whole wheat waffle mix, anything baked, pizza crust, etc. It has a nutty taste--it isn't offensive at all. Our whole family eats the stuff.
If you buy it already ground, make sure they store has kept it cool.