Long time no see Angel!
To answer your questions,
1: To become a villian all you have to do is win a fight. From white belt you may choose which path you will take. - exception - you must defeat a Dark or Yakuza to enter the path of Light and vice versa, you must defeat a Honored or Light to enter the path of the Dark. Honor, Sash, and Yakuza are open at any time.
2:The hand button is for generating 5 move strategy hands quickly (instead of generating 5 seperate moves.)
MidKnight