I agree with Meowzy. It would've been mentioned if something terrible did happen to Fujitaka. But by the way Syaoran had put it, Fujitaka died peacefully.
As to whether Fujitaka and Clow Reed have met, it's obvious that they knew each other (as seen in book 4) where Fujitaka introduced Syaoran. As to whether there's something special between Fujitaka and Clow Reed in Tsubasa, I'm not sure.