Armadillo:
[OOC: I'm newer to this system, if I think I got a distinction or milestone in there, do I literally call it? I think I got Monstrous Appearance or Trying to Make It Right in there, SG's Chipper Personality thing, and the milestone "When you declare somebody your old ally or foe", if I've got it right. This wasn't quite 'drastic action' enough, and he's got too much of a plan for it to really be Hair-Trigger Temper, I think? ]
Yep! For Distinctions, they're always part of a die pool, so you'd say something like
Buddy D6 + Monstrous Appearance D8 + Super Strength D8 + Combat D8
And then roll your 1d6,2d8 in the die roller. You don't really need to call out Distinctions unless they're part of a roll, but Milestones should certainly be announced so you can collect your sweet, sweet XP.
If you wanted to use one of my Distinctions, I believe you'd have to pay a Plot Point for the privilege of pilfering such power.