LOL at the childish arguing...
aaanyways... yes, i think the blue red "female" is actually a male!
a young veiltail boy! have you any clearer pics of him/her?
as for the tanks. if you do your water changes rigorously
i dont think they are brutally too small BUT your fish would do much better in larger tanks
something around the 2.5g - 3g with heater if you dont have lots of space! thats my setup atm and its easy enough to manage. also, with larger tanks like 3g you'll be able to spread the water changes too a lil more!