I can't help but notice that no one answered the spoilered DD question, so I'll take a stab at it.
Since it is a SU ability that can be activated as a free action, I do believe that you are able to use it to escape a grapple. Taking the wording super-literally, your equipment wouldn't go, though. lol The description says 'only the blink dog,' not 'only the blink dog and it's equipment.' I don't think any DM would do that, though.
Uh, I mean "Your opponants turn into platinum statues." >.> <.<