Dwarf Puffers can puff but I would guess they probably do not do it very often. It is not recommended to cause them to puff. It is quite a site to see a puffer puff but.... Puffing is a sign of stress.
All of the puffer species are able to puff. It is a defense mechanism.
I have had my green spotted puffers 11 months and they have never puffed.
I think DP's are a great choice to start w/ puffers. They are small and fresh water. You can have a real planted tank with them if wanted. They can be bred and kept w/ multiple DP's if you set the tank up right. Make sure you are sold the real dwarf puffers and not the green spotted puffers. I have heard of that happening before. GSP's require 30g per fish full grown and high end brackish water. Breeding has never been documented. They can be very aggressive w/ their tank mates and cost a bundle to keep.
Here is a very good article on DP's: http://www.tropicalfishforum.net/sho...=dwarf+puffers
For more info on DP's or any other puffer check out thepufferforum.com
55g - 2 green spotted puffers in brackish conditions
20g- 6 leopard danio,2 glofish danios,4 whiteskirt tetras,shrimp & neritas
10g- ramshorn & pond snails,3 neon tetras, cherry shrimp
10g- QT tank-empty
2.5- QT tank- nerita,amano,anacharis