Infield fly question

[mista]

I recently played in a softball game where there was a disputed infield fly call. I know this is a baseball forum, I'm assuming the rules are the same.

There are no outs, runners on 1st and 2nd. The batter hits a pop up, and the umpire calls out "infield fly, batters out". The pitcher, 3rd baseman, and shortstop have a communication break down and nobody catches the ball. Because the ball had so much spin, it bounced from fair territory into foul territory with nobody touching it. The ball also was not past 3rd base, so it went foul in front of the bag.

1. Is the batter still out due to the infield fly rule?

2. When the ball goes into foul territory is it a dead ball situation?

3. If there was no infield fly rule called by the umpires, then would it be a foul ball in this situation?