Huh, I did not realize the relationships were like that, with crocodiles being much more closely related to birds than they are to say, lizards or snakes. I guess the layman categorization of "reptile" is really pretty iffy :)
Yep. Birds are sort of arbitrarily scooped out, because uh, they're birds, dammit, not reptiles!
This chart is really cool. Look at how us mammals branch off from our fellow vertebrates after amphibians but BEFORE reptiles and birds! We are strange creatures.