I'm pretty sure you would be fine changing the LEDs to any color you want. I have soldered together many, many LED circuits of various colors and I always use the same resistor no matter the color and have never had a problem. (The resistor is already in the skull, so don't worry about that.) Just make sure you use the same size LED. It's probably a 5mm (3mm are VERY small).
On the speaker--it might the same problem the cheap $20 talking boris skulls have. It's not the speaker, it's the lousy chip that drives the speaker that sounds bad. If it has a sound input jack the best bet would be to use a splitter with a small set of speakers.
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