Yes you can.
No.
Under My Xbox on Xbox.com or your dashboard you will see a spot to create your avatar.
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No, just recover your gamertag on Xbox Live.
No. yes
yes
Yes but Microsoft call it an avatar
They may just remove the arcade entirely, and make the Pro the main 360.
Yes. it depends on the year make of the model. the old arcade as a power plug that clips into the xbox instead of sliding in. which is much better but it overheated due to it was made of metal
Yeah, just recover your gamertag over Xbox Live.
It is a camera that will have your avatar copy the same movements you make. Also it allows you to have video chats with other gamers over Xbox Live.
No..only xbox 360 games