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Okay, I can answer questions one and two for you. Here goes:
1 - The Chao with a wide toothed grin means he is an evil happy Chao. It depends on how you treat the Chao before birth, as it will be born differently depending on the way you raise them in the egg state. I have 2 evil happy chaos. <3
2 - The animals are found throughout action stages. You complete an action stage and defeat enemies to recieve the animals that will boost your Chao's power, stamina etc. If you recieve them by defeating an enemy, they will be surrounded by a green sphere. Once you've completed that action stage, head out to your closest Chao Garden, and you character should automatically shoot any animals that you have collected out. Post and tell me how it goes - hope this helps!
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