Hi,
I realised that most people started talking about the skin protection. I'm pretty sure Pleos come with a Pleo cape, so that SHOULD help. If not, any type of soft fabric would help. Time to get creative!

Regarding the clacking of the legs, mine does that too. When I cradle it, and it starts moving, sometimes it starts cracking. It's done that so many times now, but so far it's fine.

Pleos are meant to be very reliable and durable products. They say if you accidentally drop a Pleo on the floor (I don't recommend this, however) it shouldn't break. The Pleo would just pretend it's broken, and start limping. They have clamps in all their joins, which make sure the Pleo doesn't fall apart or get cracked when they're bent too far. That may also be a source of that clacking sound. Do you happen to bend the Pleo alot?
When you purposely bend the Pleo (when it is off), it should automatically clamp back into it's original position and resume it's stance. So don't be worried and have fun with it.

If you have any other problems, feel free to ask. That's what a forum is for!

Also, there are videos on PleoWorld.com which tell you what happens inside the pleo (i.e. the clamps). Here's a video made by Derek Dotson, CEO of Innvo Labs.
This might help you find out the workings of a Pleo.
http://www.pleoworld.com/videos/pleoinside.aspxwinkwink