where does it live? 
the temperate rainforests of the Olympic Peninsula on the west coast of North America.

what are its natural predators? 
Its natural predators, including the bald eagle and sasquatch. 

what form of locomotion does it use to move? 
Reaching out with one of her eight arms, each covered in sensitive suckers, a tree octopus might grab a branch to pull herself along in a form of locomotion called tentaculation; 

http://www.snopes.com/photos/animals/treeoctopus.asp

http://www.dailymail.co.uk/news/article-1352929/Endangered-tree-octopus-proves-students-believe-read-Internet.html