I'm going to first answer your second question which is establishing the isomorphism
$$\mathcal{O}_X(2)\otimes\Omega_{X}(X) \cong \mathcal{O}_X$$
for $X=\mathbb{P}^1.$
For constructing the cotangent sheaf, we start with the module of relative differentials $\Omega_A$ and then by definition, $\Omega_X$ will be the coherent sheaf associated to $\Omega_A.$ Let's find out what $\Omega_A$ is?
If you review the construction of the module of differentials, you'll see that we start with a free module generated by $dT_0, dT_1$ i.e. $AdT_0 \oplus AdT_1,$ then we mode out by relations, which in our case, there is only one relation, $T_0^2d(T_1/T_0)=T_1^2d(T_0/T_1)$ in the overlap $D_+(T_0) \cap D_+(T_1)$ which after differentiation leads to $T_0dT_1=T_1dT_0.$
Therefore,
$$\Omega_A=AdT_0 \oplus AdT_1/(T_0dT_1-T_1dT_0).$$
It's enough to establish the isomorphism on stalks, so let $p \in D_+(T_0)$ and $\mathfrak{p}$ be the prime ideal of our point. We claim that
$$A_\mathfrak{p}dT_0 \oplus A_\mathfrak{p}dT_1/(T_0dT_1-T_1dT_0) \cong A_\mathfrak{p}$$
Proof: Take an element $fdT_0+gdT_1 \in A_\mathfrak{p}dT_0 \oplus A_\mathfrak{p}dT_1/(T_0dT_1-T_1dT_0)$ and send it to $fT_0+gT_1 \in A_{\mathfrak{p}}.$ Conversely, take an element $h \in A_{\mathfrak{p}}$ and send it to $(h/T_0)dT_0 \in A_\mathfrak{p}dT_0 \oplus A_\mathfrak{p}dT_1/(T_0dT_1-T_1dT_0).$ It's easy to show that it's in fact an isomorphism.
The case for localizing at a point $q \in D_+(T_1)$ is quite similar. I'll leave it to you to fill the gaps. Also, note that we're using the relation $dT_0/T_0=dT_1/T_1$ on the overlap $D_+(T_0) \cap D_+(T_1)$ to have a consistent morphism.
You can easily generalize this isomorphism and show that $\Lambda^n \Omega_{\mathbb{P}^n} \cong \mathcal{O}_{\mathbb{P}^n}(-n-1).$
By now, you should be able to somehow answer your first question.