Naturally occuring chemical compounds called saponins which are found in red wine have been found to help lower cholesterol when consumed in moderation.
It depends on the type of cholesteral and with the rest of the diet. Studies have shown that red wine in conjunction with garlic can act to reduce "bad" cholesterol.
Red wine is particularly good for your heart. However, it obvioulsy does have adverse effects on the body, particularly the liver, if you start to drink too much. You should drink one glass per day.
There is some research that says that red wine will lower your cholesterol. Drinking a glass or two of red wine can have a relaxing effect, which is likely good for keeping blood pressure down, and perhaps lowering cholesterol.
Yes, it works great. Just drink enough until you feel a little buzzed, probably two or three glasses every couple of hours. If you let it wear off you cholesterol will go back up though.