Above cherrgrove city look right.
a dragon
you will find it north to cherrygrove, on route 30
You give the red scale from the shiny gyarados to mr Pokemon
go to mr. pokemon's house and trade it for a exp. share
Mr pokemons house for exp.share
Trade the red scale to mr pokemon
Yes. Give a red scale to Mr. Pokemon and he will give you EXP Share.
You get TM29, Psychic, from Mr. Psychic's house in Saffron City.
Mr. Mime -- A Chikorita can learn it at Lvl 12, too.
After starting the game go to cherrygrove city and go north to mr Pokemon's house in there mr Pokemon will give you the egg.
I preference pokemon crystal
There is no HM08 in Pokemon Crystal. Pokemon Crystal has only 7 HMs that are available to use.