Yes, I use cups inside the coop. Nipples, I've heard, do best outside the coop, as there is always the chance that they might leak. I have bantams, and I mount the cups about seven inches off the ground. For large fowl, you'd want to mount them higher (maybe around 12 inches or so). Nipples...
I also use the water cups pictured. Every day or so, I just wipe out the cup with my finger or with a paper towel. They don't get as dirty as normal waterers, so daily cleaning isn't quite as neccesary (at least for me--your birds might get the cups dirtier). Its still a good idea, though, to...