I am a 42 yr old male, will going on peritoneal dialysis because of kidney failure affect my sex drive?

Probably. Unfortunately people with kidney failure almost universally complain of decreased sex drive and problems with erections. This is not as much due to dialysis, but the renal failure itself. Be open and honest with your doctor so they can help you through this. If they cannot, see a urologist or family medicine specialists who is used to helping people with this.
Depends. It will depend more on how effective dialysis is. If you are regimented, and have good catheter function, you should be near baseline.