QUESTION 1
But during the installation It asked me if I wanted to use Comodo's DNS. I declined the offer as I was not sure what this meant. I read in the EULA that if Dragon is uninstalled I have to point the DNS back to what it was before or something like that. I really could not find much help to do this or what it really means. Does it mean I am not using the safest configuration of the browser.
Any chance of an explanation?
SecureDNS will block access to known malware sites. If this appeals to you, then you could use it. I believe Dragon will switch your DNS back to the original settings, but I could be wrong. I know CIS does it, so I'd be surprised if Dragon didn't.
More info on SecureDNS here.
Secure DNSQUESTION 2
Also I tried to install an extension form Google but a window came up saying I need Dragon version 7 or higher. Then I realised that Dragon is using an outdated version of Chrome. But I can't find any later version than Comodo Dragon 6.0.0.10, The latest stable version of chrome is 8.0.552.215 Again... any explanation as to why?
Yep, Dragon is quite a bit behind. Why this is I really couldn't say. It could be that the changes they make are really complicated to merge into the sourcecode, or it could be there is only one guy on the browser team and he only works part time.