Pace Carbon and Chain

Sabz__

Dirt Disciple
Hi,
I'm relatively new to the MTB world. My GT Zaskar LE recently broke after a small accident, forcing me to replace most of the parts. Thanks to this forum, I've managed to replace everything with original, XTR Parts, except the cassette and chain. My first question is, what damage would be caused by using a different chain? I can tell that my shifts are a lot more "vigorous", on certain gears the chain misses the sprocket after around 2 rotations. I can tell it's not good for the bike, but I was wondering if there was a way to minimize the damage caused without spending too much, as I'm quite young and don't have much money right now. I'm guessing that the chain is too long, as on gear 1, the chain is dangling off the bike. Hopefully I should be able to get a chain and cassette within the next 2 months.
My next question is to do with the front suspension. It's a Pace Carbon Front Suspension, I'm guessing a RC-35(will check later on today) and there is no "movement" on it. When I lift the bike up while keeping the wheel on the ground, the fork would move up but when cycling or after sitting on the bike, it would go to it's lowest point and not move up again. As you can probably already tell, my knowledge on MTBs is very small, so I'd appreciate all the help I can get. Will upload some pictures of the problems later.
Thanks
 

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