An NPC village really has no useful purpose. It is mainly for looks and so you can interact in fun ways with the NPCs, such as using them to trigger and/or test traps.
You can't.
you can get it from npc villages. here is a seed for a npc village: FINAL
Every map has them, as they are randomly generated.
Just look around. They randomly generate, so there is no definite location.
No.
No.
There will always be a blacksmith but he will not normally hang around the blacksmith house. Look around for a villager with a black apron, that is a blacksmith.
Because the current version of Minecraft on the Xbox 360 is not as up-to-date as the PC, the trading feature with an NPC villager does not exist. When Minecraft updates to that specific version, NPC villagers will be able to be traded with.
Yes, if you have the recent update of minecraft 1.2 it will work.
You don't make it. You find an npc (non-player character) village and give the priest a diamond and he will give you a bottle o chanting.
NPC villages are currently not in the code for generated structures in Minecraft: Pocket Editon. Therefore they cannot be generated in any seeds in the game, and are only able to be generated in worlds on the PC version.
You build your own house and you can find NPC villages in the world