To connect, place two tamagotchi's north/south of each other, and go to the 5th button the the top row of your tamagotchi system. Now, it will say:
Playmate?
Ver. 3
Others
Pick Ver.3 if the tamagotchi you are connecting with is a Ver. 3, or Others if it is a V.1, V.2. If you pick Ver.3, you'll be forwarded to another screen, that says: Game, Present, and Visit.
If you pick Game, you and the other Tama will connect. Sometimes your Tama goes to the other system to play, or vice versa. They will endulge in a game that is computer controlled, meaning you have no say if they win or lose. Then, the winner will generally be awarded 30p.
If you pick Present, you your Tama will etheir receive or give a gift. If you haven't pre-wrapped a gift, then you will etheir receive/give a dung, or a heart. Yes, these do have meaning which I'll explain in a moment.
If you pick Visit, then your tama's will visit eachother and do something together. It's the basics of connection, and was featured in every version to date.
If you're connecting with another V., then your only option will, infact, be Visit from V.1-V.2.
Everytime you visit a tama he or she is added to your friend list. Below the picture of each charecter is a panel. When you connect with a tama, if you connect enough, smilies will appear. MalexMale or FemalexFemale will always have these smilies. But, if it's FemalexMale, then, once you connect enough, the smilies will turn into hearts. If enough hearts are achived, sometime in visiting mode, they will get married and have a baby tama. If twins are born, it's one tama to each parent. If only one is born, it goes to the mother.
BTW: Dung Presents never get you anywhere.