I was just in the middle of a graphics tutorial for #1
As for #2. There is no native way to simulate the mouse wheel spin, so on it's own Circle Dock will not spin.
There is a couple of possibilities.
1.) If you can assign a touch motion to simulate the Arrow Left and Arrow Right Keys. The Arrow Right and Left will make Circle Dock spin accordingly. As for re-assignment; No way that I know of
2.) I am in the experimentation phase to be sure.
There is a program called Stroke It
This program may have a way to simulate the scroll button as a touch screen solution.
I fear that it may interfere with your current touch screen software.
I have yet to fully test a plugin that I am working with the folks at Stroke It on, but may at some point become a native solution
There is a third party solution that would require some work.
There is AutoIT and AutoHotKey
Either one of these programs could be used to create a small based program that can re-assign the necessary keys.
As to how exactly is a bit above my pay grade