It needs to be mashed. It's a great base malt- you can use it for up to 100% of the grainbill (although I never have). It's got a malty-sweet flavor that is really nice in a beer like Maibocks, bocks, porters.
There are several different maltsters and different colors. There is a darker munich malt- Munich 20L that is actually almost orange-ish. There is a lighter colored one, about 10 SRM that gives a slight reddish-orange color.
Munich malt has undergone a higher kilning temperature than regular pale malt. It's got a really nice malty aroma and taste.