fossils can be find if you dig into the walls where the yellow spot are every place got yellow spot has an even chanse to find a fossill
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you found them under ground in the walls then dig it up
well, there are tons of items, the main items are spheres (those let you buy things), fossils (you can go to oreburg and turn those fossils into other pokemon), and many many more.
go in the golden rod under ground tunnel
Under Veilstone City is a small cave where a man is digging. In there you can find that pokémon. But I don't think it's very common, so you must be patient when you look for it.
You dig for it under ground after you get the national pokedex and the are rare.