Yes we are on a pass fail system here. They are going to remain on a pass/fail system until/if the boards change over to pass fail. If/when the boards do change (no one really knows if this will happen for sure yet) then they said they will change back to a grading system. Although they say they do not rank us or keep grades, they do in fact have them around school so if they needed to they could have that information available. To my knowledge people who want to specialize shouldn't have any more trouble then anyone from a graded system. But since I am just first year I can't give you much information in that subject yet.
Yes we are a partial PBL system. We only do one case a week, it takes up about 6 hours of our class time. It's a nice change up from traditional lectures.