Tax software and IRA questions

[bpp]

Two questions:

1) Does anybody know which of the tax prep software packages work well for US citizens living abroad?

2) My Japanese employer will give me a one-time lump-sum payment upon retirement/separation, after which I will receive no payments from them (only Japanese social security). Of course this is not registered with the US in any way. Does this count as being covered by a retirement plan at work, and hence count against being able to contribute to a traditional deductible IRA?

Thanks in advance.