I think it working as the blur spell works just fine. it should have a big enough size bonus to hide think. we can always give it a feat to make it stealthier if we wanted.
I was thinking perfect because non winged flyer tent to have awesome maneuverability and smaller creatures have better maneuverability so it seemed right.
I say 2 HD, 40ft and fly 60ft (good) maybe perfect sense its magical flight, the Damages all look good for the attack line sense its tiny i think a d3 fire damage is ok.
I think it should be able to use both.
Similar creatures
Pesudo Dragon: Str 6, Dex 15, Con 13, Int 10, Wis 12, Cha 10
Fearie Dragon: Str 9, Dex 17, Con 13, Int 16, Wis 14, Cha 16
Fox: Str 11, Dex 19, Con 11, Int 2, Wis 12, Cha 7.