They crack, as eggs do. Repeatedly. I have never heard of an egg evolving. Though, I believe that this is how it's done in the show. I wouldn't know. It's been so long since I've seen it.
Cracking in the game though in the Anime they look like they evolve. Since they do that it seems that they glow...so I would say the hatch by evolving...
depends, which you go by, anime or game. Games hatch like normal eggs.... thought i got a good question, how big is a snorlax or onix egg? imagine trying to carry that around with you...