1. If I submit the app now without the letters of rec...is that okay if they are on their way? Is that better worse or doesn't mater? If I get one letter in by the deadline and the other will come within a few days after that is that okay also?
You can submit your apps without the letters but you won't go complete at a school that requires them until they are in. LSDAS will send an updated copy of your file once your letters do come in.
As for whether it'll prevent you from getting in time for the ED deadline, like Eveman said, it really depends on the school. Call the school and tell them your situation and maybe they'll make some sort of allowance for you. If your letters aren't close to being in (as in, not sent yet) then it might take you awhile because it takes up to two weeks to process after they receive them. I don't know if there's any way to hasten the process for LORs.
And remember, not going through ED isn't the end of the world. Some people have said that they've heard a lot of schools don't really give that much of a boost to candidates who apply ED. But I'm not sure, take it for what it is.
Either way, I wish you the best of luck this cycle. By the way, where were you thinking of applying ED?