As I say, I don't have one of these things yet, but from what I have read...
Yes, you feed them bloodworms and other live or frozen foods. I'm planning on starting a daphnia culture (and perhaps blackworms as well, if the daphnia goes well) to feed them, as well as some dwarf puffers (which are also planned fish as opposed to fish I have now). Some of them eat sinking pellets too. Oh, and earthworms was another favorite mentioned.
No, they definitely don't go in a 10g, but then neither do dojo loaches. Kuhli is more like it, but if you look up the care sheets of kuhli loaches, they suggest 15g as a min (but since they really don't swim very much, and they stay small, seems to me like a 10g would be all right for them).
I don't think they would eat hillstream loaches, too wide. Kuhlis are worm-shaped and could get mistaken for an earthworm and so it might not be safe. ADFs are probably too wide as well.
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