1.) You can make the dynamic rope a couple of ways but i would use hair,
take a spline (loads of points), in hair tags add spline dynamics, then you can se a contraints to conect it to your hanging object. Then as the balls move the hair will follow.
You could also use a IK chain to do the same thing then you could avoid constraints…but then you run into ik… so its fun eitherway.
2.) Put a vibrate tag on your camera for the random movement.
3) ???
Later
Randy