Not really sure how, but the 4ohm and 2ohm ratings up there got switched around. The amp would have a HIGHER power rating at 2ohms than at 4ohms.
Boingoman was right, you can "daisychain" speaker cabinets to drop the impedance. Let's say you have two 8ohm cabs that you hook INTO the first one, then from that one you use the OUTPUT to go into the next cab. This halves the impedance of the cabs, making a single 4ohm load. This way you can get better efficiency out of more cabs, but you have to pay close attention to what you're doing.
To answer your second question: You can have more power in an amp than you have wattage on your speakers, and you can have more wattage on your speakers than you have power in your amp. The problem with that is this: First, if you're not careful it's easy to blow your speakers with an amp that pumps out a lot more power than they can handle. Secondly, if you're not running a speaker around where it was made to run wattage-wise, it won't perform as efficiently.
From my experience RMS ratings in cheap-o amps like this tend to be VERY conservative, and sometimes even outright lie. 1,200w at 2ohms, okay, but I've never run a 2ohm setup in my life and probably won't ever.