IF the decals are cracking, then I;d imagine they ae on top of the clear coat. If you're looking to remove them, use a heat gun (but be careful, that isn't a goddamn blowdryer, those things are hot; so remove the decals slowls, okay? haha). Speaking of which, you can also use a blowdryer! It'll just take more time and patience. And depending on what brake you have now, you may have to get a new long reach brake. Can't say for sure, but I'd expect you'll be having to get a new brake.

As for the BB, it may either just be loose in the frame or there's a dry or loose interface betwen the components. Basically, I would just remove the cranks, clean th einterface between the cranks and axle, tighten the BB, put both cranks back on, and you should be good to go. If that doesn't do it or you don't want to go through the trouble, then it looks like a new BB (and maybe some cranks too!) are in it for you!

Oh, and don't get a Bikesdirect bike.