If you are using a formula to reference the predecessor, then the reference will remain when you insert rows. The automated WBS numbering may change, but that's the benefit of using a reference - it allows you to insert rows without messing up your dependencies. If you were to manually enter the WBS, then if you inserted rows, you might have to go through and update all your WBS references (not fun).
How can i change the colors of the bars on the Gantt chart to reflect a legend? I want the color to change based on a status click down menu of Complete, In progress, etc..
You could use a formula within the Color column to return a color code based on the value of some other cell. For example: =IF(status="Complete","x",IF(status="In Progress","g", ..... that's just a rough outline of a formula. You'd need to adapt it for your case.