1. Agrobacterium-mediated transformation can be used to localize a systemic virus. This can be done by, say, removing the coat protein gene of the virus, from the viral genome, in the transformation construct -- or any other gene that is essential for systemic movement by not essential for the production of symptoms.
2. This is not the magnifection method. Magnifection method relies on Agrobacterium-mediated transformation to continuously provide viral replicons carrying the gene of interest that get expressed through the resulting viral infection across the plant body. please see http://www.ncbi.nlm.nih.gov/pubmed/15755568
As Velu said - magnifection is a quite specific term coined by the gyus from ICON and as far as I know it is being used exclusively when referring to their TMV based vector system and whole plant agroinfiltration.
As for the first part of your question - If I undestand it right, you want to limit the systemic spread of your viral vector and you want to use Agro. Before we can give you answer, we need to know what vector you have currently and how do you innoculate your plants. If your vector is for example based on TMV , then yes by removing the CP you will break the virus ability to move systemically. If its based on PVX, by removing the CP you break also the cell to cell movement, which is probably not what you want. The second part of the same question is whether you can use Agro - if the vector you have has an Agro compatible origin of replication and plant recognizable control elements (promoter/terminator, optionaly introns) then yes. If you are currently using in vitro transcribed RNA, then you might need to do some extensive reengineering of your vector before it will be agro-compatible.