Sarah, I can start with a few answers. About tasks on the timesheet, each overlaying task will take a new line on the timetime. The only way to put all on one line is to make sure that the timelines of each task don’t overlay. Milestones aer always on the top or bottom as a callout. Tasks can be either task bars or a callout.
There are lots of options for formatting the task fill and text. Use the Format tab that shows while selecting the timeline view.
One question I’m not sure about. You said that others could easily do this in 2007 but not in 2010. The timeline view is new with 2010 so I’m not sure what you meant with this. Additional information would be helpful. Let me know if you need more. There are a lot of articles that might help. Check this out from Microsoft: https://blogs.msdn.com/b/project/archive/2009/10/01/project-2010-introducing-the-timeline-view.aspx