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Is this ok to use? If so do I have to toast it or can I use it as it is? How well would this work for a rum?

Never used it, but have heard it's pretty harsh.

Works perfectly fine. But DO stay away from the sapwood, and yes, toast it. Always.

How do I tell if it's sap wood? I don't think it is but I am not completely sure.

The sapwood is obvious when it's still in board form, as it will be much lighter in color than the heartwood, and the transition is abrupt.

I have used red oak many times. My preference is toasted or charred but like other woods you can use it however you like: untoasted, toasted, charred. It does impart sometimes a barely noticeable bitter taste that I have accepted to live with.

I don't have access to white oak where I am. I ave ordered it from http://thebarrelmill.com/" onclick="window.open(this.href);return false;" rel="nofollow before but it gets to be expensive.

About a year ago I used some red oak and cut them into 1/2 inch stick 6 inches long like wineo said and charred the outside with mapp gas. I was worried because after a month or two it tasted pretty bitter and harsh, but it's been sitting in my basement for about the past 9 months and I tried it today and it is very smooth. It tasted really good.