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It is not possible to get the Red Gyarados in Pokémon Yellow version. You can only get it in Gold, Silver and Crystal version.
Gyarados doesn't any further on Pokemon FireRed.
Gyarados is a water type. Water type Pokemon are weak when battling a grass type Pokemon.
Gyarados should learn Bite once Magikarp evolves at lv 20. Gyarados will then learn Dragon Rage at 25, Leer at 32, Hydro Pump at 41, and Hyper Beam at 52. Gyarados will also learn moves if you teach it TMs and HMs.
Yes, the "Red Gyarados" is actually just a shiny Gyarados.