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1. Just remove the code from the test site and then insert it on the new site. No problem.

2. You want to pass the variables from form 1 to form 2 using the query string. You will set this up on the confirmation tab of form 1, to redirect the visitor to form 2 upon completion.

http://www.gravityhelp.com/documentation/page/Form_Settings#Confirmation

Then you will set form 2 to receive those values. You do that by "allowing the field to be populated dynamically".

http://www.gravityhelp.com/documentation/page/Allow_field_to_be_populated_dynamically

3. Gravity Forms are designed to inherit much of the style of your WordPress theme. If you would like to change the way the form looks, you can add some CSS to your theme's stylesheet (not the forms.css that is included with Gravity Forms.) You can find out more about CSS targetting here:
http://www.gravityhelp.com/documentation/page/Design_and_Layout

Post if you have more questions. We'll help you out.

2. Yes, you have it. You will need to be sure longform has "allow field to be populated dynamically" checked, and you type in the name of the parameters there, exactly as you are sending them from shortform.

Also, in the Confirmation tab for shortform, you will use the "Redirect" radio button. The URL will be the URL of the page where longform is embedded. Then check the " Pass Field Data Via Query String" check box, and in the box below enter your query string. The ? mark will be added automatically, so just enter the parameter names and fields here. See the note below the box for how it should look when you're done. Use the drop down to dynamically replace the values in your query string.

[php]
fname={Name (First):6.3}&lname={Name (Last):6.6}&email={Email:8}

I used the drop down to insert the proper merge tags for First Name, Last Name and Email. My name is in field 6, and email is in field 8. I always use the drop down to get the syntax and naming correct.

3. Please clarify what you mean.

Thanks

You have to create form 1 first. Create the shortform, save it. You will need a page, at the very least, for longform, so you have a URL to use in the confirmation redirect on shortform. So create that page so you have the URL. You can save it as a draft for now, since you don't have longform embedded there.

With the URL where longform will live, you can go back and edit the confirmation redirect on shortform. Enter the URL, then built the querystring with fname, lname and email. Those parameter names are what you will need for longform.

Now, build longform, and check the box "Allow field to be populated dynamically" and enter the parameter names exactly as they will be sent from shortform (fname, lname and email.)

Then embed longform into the draft page you had previously saved, and embed the shortform somewhere. That will get the tow working together.

You can do both or either of item 3 by adding a HTML block to your form. You can put whatever HTML you want into that field, which is for display only. It won't be submitted with the form.