New puppy with possible developmental issues?

It sounds to me like an urgent trip to the vet is in order. There are several things that you mentioned that concern me. Bloated belly could be worms, walks in circles and runs into things could be eyes or brain issues or something else entirely. Has the puppy been de-wormed , what about vaccinations? You say that the friend was the cause of the problems, was the puppy a product of improper breeding? Improper breeding can lead to many problems. I have personally seen puppies that were doing some of the things that you describe that were the product of improper breeding such as walking in circles. The puppy seems to have a lot of things going on so I would say get the vet to take a look and if at all possible get the full story from your friend. If this is really a good friend/responsible breeder she should have no problem giving you the whole story. Good luck and I hope you get the puppy feeling better soon!!