Okees, first thing you'll probably want to do is turn the frame rate down. I usually have mine at like 4 for Tiny animations. Smoothness of motion can't suffer too badly on a critter that doesn't have joints.
As for adding a pause, you just need more frames in between. Okay, let me back up...
The first thing I do when making an animation is make a still pose and upload it to the test grid. This way I can catch any protruding body parts and adjust height before I've done a bunch of fiddling with the actual animation. When I get that how I like it, I guesstimate how many frames I'll need based on complexity of the animation. Let's say for this one I want 10 at 2fps. Then I copy the first frame and paste it over the final frame. This helps prevent jerking when it restarts the loop. Then I start fiddling with body part sliders. If I want a pause in motion anywhere, I shift-drag the body part I want to freeze along the timeline (kinda like SL, whee!) and plop it down a few frames away. If I want the whole animation to freeze for a few frames, I'll copy-paste the entire frame. What this does is keep the body parts from starting to transition immediately from one pose into the next one. Notice the icons along the timeline: boxes, arrows, and circles. These clue you in as to what the animation is doing, where movement starts and stops.
Incidentally, the Tools > Optimize BVH is the best button in the whole program. It gets rid of the between frames (called "tweens") that lock down when you save and reopen the program. Trust me, it's a good thing, and you'll want to do it when you reopen saved files to edit them. Otherwise, the program no longer updates the tweens when you make adjustments at the key frames, and you get some very strange results.
Does that make any sense? O.o
Raglan Shire