To answer you questions in order......
1. You are overfeeding him. Pellets swell up once exposed to water for a short period of time. Try to cut out one feeding and 1 pellet per feeding. A variety of foods would help also (daphnia, bloodworms, brine shrimp. Freeze dried or frozen is OK.)
2. Sounds like finrot. Your betta is most likely a VT (Veiltail). The most common betta tail type sold in stores. The conditions they are kept in are usually less than adequate. It will heal with a little TLC.
3. Could be both, playful and trying to make a bubblenest.
4. His coloration sounds normal to me.
Hope this helps.
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