Yes, pretty much. The Irish needs the "iad" to make the "is ... é/ í/ iad etc." in order to say that one thing (they) is another thing (bears). The pronoun (they) is not usually included in the English. What you have said is a fairly literal translation which I would say is correct, even if it is a little odd in English.
Yes, "mh" is pronounced with a "v" sound in words like "ainmhí", "ainmhithe", "uaimh".
I'm Munster Irish, words like "lámh", "folamh", "déanamh", "gainneamh", "talamh" all use a "v" sound, but you get a variety of different pronunciations in the other dialects (sometimes with a "v" sound in Connacht, sometimes a "v" sound in Ulster).
I have such problems remembering the order of words in these sentences, and keep reversing (for example) the words for bears/animals. Can someone tell me the difference in sentence construction between "The bears are animals" and "The animals are bears"? Anyone have a mnemonic or suggestion for how to remember the order of the words?