well here is an answer to all ur questions,
1.you can get a better lure by earning trainer points, unlike the 1st nintendogs this is not an easy ditsy game you play for stress reilief! they made it a tone more difficult.
2. yes u have to train at seaside till ur dog gets faster in sand.
3. (my question) how the heck do you get your dogs physic to ideal??!!
4.yes you can lose trainer points, by being "mean" to your dog, like when your brushing your dogs coat and it yelps or when your on a walk and your dog yelps. so basically don't make your pup yelp.