Travel between Aizu-Wakamatsu and Nikko

Hi,
I'm just finalising my itinerary and would appreciate some help to plan my travel from Aizu to Nikko. I've been told that it's possible to travel via the Tobu line and that the trip is very scenic. Looking on Hyperdia, I've found a 7:59 direct train from Nishi-Wakamatsu to Tobu-Nikko (the Aizu Mount Express).

Can you tell me:
1) Would this train be my best option?
2) Is the Japan East Tohoku Area pass valid on this line (I don't think so, but would like to confirm)?
3) Is there a Tobu pass that would cover this journey (and perhaps an onward journey to Tokyo)?
4) Would I need to reserve a seat (and how to)?

Thanks very much in advance!

This pass could be useful for the trip:
http://www.tobu.co.jp/foreign/en/pass/aizu.html

Would I need to reserve a seat (and how to)?
I did this train from Kinugawa onsen, no reservation just purchased a ticket before boarding; I am not sure if you could make a reservation.

Like other passes, Tobu pass mentioned above is for round- trip traveler.
It costs higher than the one- way ticket.

Thanks for the information. It's very helpful.