Template editing - Magento Static Blocks

Yes, you can use Magento Static Blocks in your template.

The Identifier is the tag

Given the screen shot from the Magento Sample Data, to include the contents of the "Footer Links SM" Static Block on the template just use:

{footer_links_sm}

It is just the Static Block Identifier wrapped in curly braces.

Using Template Tags inside Static Blocks

When the content of the Static Block is rendered into the template by the Codisto Template Engine, the Static Block is executed as a template itself. That makes it possible to use any of the tags available to the template inside the Static Block. The only limitation is that you can't use a tag that would cause recursive execution. The Template Engine will stop execution and fail if the execution ends up going around in circles.