would make very sure that getting into his sister's school was not being described as an acheivement or accomplishment, and that the school itself was not being described as being "better" or somehow more desirable than the other school he might attend if his scores don't match the selection criteria for his sister's school. I'd talk to him about how testing is to help find the right educational fit, and the right educational fit is different for different people.
Yes, definitely. We would not tie the testing to entry to DD's school--I think we would just say it was a test to see how he learns. However, I also suspect that the issue may be sticky no matter what. I do think DS is at least as gifted as his sister, so if he didn't test in, I would feel it was not a good gauge of his abilities. That said, he may not need the GT curriculum as she does.