It depends on the size of the video.
Yup, all you have to do is purchase iMovie for $4.99 from the app store.
No
Through iTunes on your PC or Mac. In there you sync it, with your iPhone.
There is an inbuilt editing tool which allows you to edit the length of the video but for the best editing you would need to download iMovie from the app store and use that to edit and add stuff to your videos.
if you want to record videos, then you can find tons of apps that will allow you to shoot videos.
You have many choices when trying to create and album to store baby videos. There are many online storage facilities available or you can contact a local video editor. They can help you arrange your videos on a CD to keep your videos safe.
Sort of. You can download videos through Podcast.
By the time I answer this question there are ~285,000 iPhone / iPod Touch apps on the iTunes App Store.
There are many Emoji Apps in the App Store!
I think so. There is a free VLC media player app on the app store for iPod touch, iPhone and iPad.
Download installous on iPhone (In the IPhone Store)
Yes, if the iPhone has a USB port it can be configured to access files on a USB hard drive plugged into that port. However as I don't have an iPhone I cannot give you details on what settings might be needed on the iPhone.