Hi artistgirlforeve, welcome to the C2 forums :)
Actually your requirements are pretty straightforward.
Basically you're looking to create an animated menu.
Start off by creating the sprites you want.
Next, use the Mouse Object and find the Condition "On Object Clicked" in combination with the above sprites, then add the actions you want on clicking.
If you want elements to be picked up, you could use the "Drag and Drop" behaviour.
To combine objects to create other objects, use the condition "on overlap with", and then spawn a new object while destroying the original two.
Finally for the animations, trawl around the forums a bit, all the answers should be here. I've seen things like fire effects before, just can't remember exactly where :)
Good luck!