2.i have a muk in play he haid a fossil haunter, he attaked and put me two
sleep, on my turn i did not wake up, he went and for some odd reason used
switch and brought out ditto, i said it  was ditto still , cause it
transformed to muk and toxic gas shut off transform, he disagrees, so could i
get a ruling.

Well, this is an interresting one.  It actually creates a paradoxal situation putting the game into a neverending loop.  Here is what happens:

The ditto comes up, and since the opponent's Muk is "turned off", it transforms into a Muk.  Once it becomes a Muk, it realizes that it has Toxic Gas, disabling Transform and making him a Ditto again.  Of course, now, there is no Toxic Gas to stop Ditto from transforming, and it once again becomes a Muk.  The cycle continues until you have a headache.  So, the ruling is as such:

Ditto can never stay a Muk due to Toxic Gas, so it is simply a Ditto.