Regarding your question about the generality of separation of variables, there is an extremely beautiful Lie-theoretic approach to symmetry, separation of variables and special functions,
e.g. see Willard Miller's book [1]. I quote from his introduction:
This book is concerned with the
relationship between symmetries of a
linear second-order partial
differential equation of mathematical
physics, the coordinate systems in
which the equation admits solutions
via separation of variables, and the
properties of the special functions
that arise in this manner. It is an
introduction intended for anyone with
experience in partial differential
equations, special functions, or Lie
group theory, such as group
theorists, applied mathematicians,
theoretical physicists and chemists,
and electrical engineers. We will
exhibit some modern group-theoretic
twists in the ancient method of
separation of variables that can be
used to provide a foundation for much
of special function theory. In
particular, we will show explicitly
that all special functions that arise
via separation of variables in the
equations of mathematical physics can
be studied using group theory. These
include the functions of Lame, Ince,
Mathieu, and others, as well as those
of hypergeometric type.
This is a very critical time in the
history of group-theoretic methods in
special function theory. The basic
relations between Lie groups, special
functions, and the method of
separation of variables have recently
been clarified. One can now construct
a group-theoretic machine that, when
applied to a given differential
equation of mathematical physics,
describes in a rational manner the
possible coordinate systems in which
the equation admits solutions via
separation of variables and the
various expansion theorems relating
the separable (special function)
solutions in distinct coordinate
systems. Indeed for the most important
linear equations, the separated
solutions are characterized as common
eigenfunctions of sets of
second-order commuting elements in the
universal enveloping algebra of the
Lie symmetry algebra corresponding to
the equation. The problem of
expanding one set of separable
solutions in terms of another reduces
to a problem in the representation
theory of the Lie symmetry algebra.
For an example of effective Lie-theoretic algorithms for first-order ODEs see Bruce Char's paper[2], from which the following useful tables are extracted.

1 Willard Miller. Symmetry and Separation of Variables.
Addison-Wesley, Reading, Massachusetts, 1977 (out of print)
http://www.ima.umn.edu/~miller/separationofvariables.html
http://gigapedia.com/items:links?id=64401
2 Bruce Char. Using Lie transformation groups to find closed form solutions to first order ordinary differential equations.
SYMSAC '81. Proceedings of the fourth ACM symposium on Symbolic and algebraic computation.
http://portal.acm.org/citation.cfm?id=806370