Also I will use the base factions as my template, Tho I have a few questions about this, Where it says the faction traits, 1-2 are the positives and 3-4 are the negatives right?
Yes that's correct. There in the RaceTraitDefs.xml and are named like Productive1, Productive2 ,Productive3, Productive4. Productive1 being the most positive and Productive4 being the most negative. There is also the AbilityDefs.xml and PesonallityTypes.xml for that part of the FactionDef editing.
The images are straight forward except for the foreground/background images. Delete the entries for FactionMoviesFGDef and FactionMoviesBGDef and add
<LeaderImageFG>Devilgirl_FG.png</LeaderImageFG>
<LeaderImageBG>Devilgirl_BG.png</LeaderImageBG>
Place these entries underneath LeaderThumbnail.
You can either put the images in ...\Documents\My Games\GalCiv3\Factions or you can add a Gfx folder to your mod folder and reproduce the folder structure from the Factions folder in the Gfx folder with LeaderBG, LeaderFG, etc.