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You must do all the sidequests (Ulgoth's Beard, Durlag's Tower etc.) before you kill Sarevok. Once you kill him, the game is over.
As for the xp cap... well, if you import your character you start BG II with exactly the same xp as when you killed Sarevok - so the amount itself doesn't get turned back, even if you went over the cap and had, say, 170,000xp, you would start with that in BG II.
I am 99% sure of the above - there is a tiny chance I might be wrong [img]smile.gif[/img]
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