It's cheaper and more effective to go up one in the back. I think it's like 1 tooth in the rear for every three in the front (or something close)
I've found a really good place to get cogs is off of used cassettes. You can disassemble those things and then have a choice of 9 cogs at your disposal. Run to the LBS and see if they have any dissasembled (or assembled) old busted cassettes. If not, I find it's better to buy parts like that from them anyway, it's hard to justify paying for shipping and waiting for such a small part. I don't remember, though, if the Outcast uses a cog or a freewheel (ala BMX) can you get a picture of it?
I am no chain tension scientist, but tight(ish) is good. Bikes (most of them) don't have chain guides and things to keep the chain on the ring and cog. If a chain is all sloppy-woppy, when you go over big bumps it will bounce right off and leave you pedaling your shin right into the bash guard. So, tighten that thing up so there is just a little bit of play in it. Spin the cranks backwards, if they stop prematurely, it's too tight.