Was settlement further inland encouraged? In the piedmont region? Across the Appalachians?
Much of the conflict on the American Continent in this period comes from the issue of expansion westward. Early settlement westward was hindered by environmental factors as well as hostilities with American Indians. Even into the early 1700s, the majority of the population lived in and around eastern cities such as Boston, Philadelphia, etc.
In the years described, the French controlled much of the territory in what is now Canada and west of the Appalachians. They were closely allied with the American Indians in that region, such as the Huron, Wyandot, Algonquin, and Objibwe. They were also joined by more southern groups such as the Shawnee. They had been trading with these groups for generations, and as such formed close relationships with them which indered British expansion both militarily and economically.
This created serious tensions with the British, who wished to expand trade into the west over the heavily-contested Appalachians, and the two soon competed for trade among the Indian groups. These tensions would help the situation to escalate into the French and Indian War, also called the Seven Years War. The result of the conflict was the ceding of Canada and much of the land that was the Ohio River Valley to the British Crown by the defeated French. This encouraged many of the wealthy landowners, especially in Virginia and the Carolinas, who speculated on land values in the west and wished to make a profit.
The issue came to a head in 1763, with the initiation of Pontiac's rebellion, led by an Odawa leader of the same name. Unsatisfied by their treatment by the post-war British fought the Crown to a military stalemate. The result was the Royal Proclamation of 1763, which forbade any settlement west of a line drawn through the Appalachians, unless one was an officially licensed trader. This greatly damaged the fortunes of many Americans who were looking forward to settling the new lands, and can be considered one of the factors that led to the American Revolution.
Short answer, yes to both to a degree. Much of the settlement was in the form of trading posts and farmers, until they met up with the French and tensions escalated. Afterwards, settlement was legally forbidden.