help with ailing oncidium noid

[menuet]

Hi, I have an oncidium noid that I bought at Home Depot. It was only tagged as oncidium dancing yellow butterfly. When I bought it, it was in wet moss, and all of its roots were rotten. Now it has new growth (the newest pseudobulb and its offshoot) and a few small new roots. I'm pretty sure I could be treating it better than I am; it's survived despite my incompetance, but I'd like for it to do well.

So I have a lot of questions:
Why is the new pseudobulb so much smaller than the older ones? Do they grow bigger, or is this as big as it's going to get? Because the pseudobulb has an offshoot now, does that mean it won't flower this year?
There is a brown area on the backbulb. I dusted it with cinnamon after I cut off the rotten roots, and it's been there since (no it's not cinnamon). Do I need to remove the bulb? The bulb is firm, but the brown area is slowly growing.
I realize now that I should not have planted this into the size bark I did. Is it OK to leave it, or should I take the chance on repotting it into something finer? If so, what do you suggest?
There is a small black area by the eye (if that's the right term) on the larger pseudobulb in the photo. It doesnt appear to be growing, but should I be concerned?

Thank you for any help, and I apologize for the number of questions.

[Tobi]

Hi Menuet,
The Oncidiums that I have start out growing about the same as yours and eventually
they become about as big as the backbulbs and some of mine never got as big and
still grew spikes and flowered. The new PB will probably flower next year although I
have had one flower the same year in the fall.

I wouldn't worry about the brown unless it becomes soft and mushy. Older bulbs
will eventually turn yellowish-brown and die off.

Although I can't say for sure about the bark size that it's in, for the plants size I
would use a medium bark with medium charcoal and perlite.

I not sure about the black area by the eye. It may be nothing and once again as
long as it's not getting soft, it could be just a pigmentation around it.