1) just roll more! Guess you could use a pasta roller but not necessary. You may want to add a bit of stiffening agent to help it hold its shape.
2) I'd try lying the fondant flat then making a slight groove in the fondant in a straight line to weaken it in one spot, then carefully tear it. That would probably make it tear along that line.
I use a pasta roller. To get the torn edges, you can try what Snowflake Bunny says, and you can try letting the strips dry a little bit, then use a ball tool on the edges quite hard, it will probably give a similar result to the picture.