You mean 1-y
2 = (1-y)(1+y), not (1-y)
2, which equals 1-2y+y
2.
The only thing that does is flip some of the signs in HallsofIvy's analysis. If you understand what he said, you should be able to tell us how that changes the conclusions, if it does at all.
You're wrong.

It's essentially the same concept, but it's probably best to just focus on the problem at hand than get sidetracked.
I have no idea how you got that for y''. One apparent mistake is that you differentiated with respect to y, but you have to differentiate with respect to t (not x).
Same mistake as before. In this problem, you need to differentiate with respect to x and apply the chain rule.