No, it’s not possible to use booleans in the Game Engine, nor is it possible to use any other modifiers (as far as I know).
However, you can press Alt + C to convert the modified object to a mesh (it lets you choose between keeping the original object and deleting the original object). I’ve only tried this on booleans, and you’ve always been able to use it on subsurf. It might work with other modifiers as well, but I’m too lazy to try it.
As far as animations go, I have no idea. I’ve never played with that.
Hope this helps you