Yeah. I think 1. N4 leads to a white win. It's fairly easy to verify that a black rook move will lead to a white win (1...R5 2. R2 and 1...Rx4 2. Rx4 N5 3. Rx5#). So the critical line is 1. N4 N5, but then 2. Nx6+ K7 3. R4 also leads to a win: 3...Kx6 4. K2 K7 5. Rx5# and 3...N3+ 4. K2 N5 5. N8 Kx8 6. Rx5#.

There are probably other ways to win too.

That is a standard rule in chess. If your opponent has no legal moves (i.e. no way to move without moving his king into check) and is not currently in check, it is considered stalemate, which is a draw.

In chess they cannot move onto a spot that would put them in check. If they can make no legal moves, it's a stalemate.