if you can get a picture of baby #1 well be able to tell you if theres a problem. sometimes, when left a little long the umbilicle does look a little like intestines, sometimes even dark purple and stuff too!
the fact the kitten is breathing is a good sighn, usually in a case of odd formation the kitten would be born dead of die within 1/2 hour.
if hes still got that "bubbly" breathing, take him in a towl hold him at a 45 degree angle with his head facing down and vigourously but carefully) rub his back even some gentle taps. its very likely hes got a little fluid in his lungs causing the bubblyness, a healthy kitten will cough it up on its own, but if hes a little weaker giving him a little help to shift the gunk will be a good help.
while youve got hold of him take a good look at his belly, does he have a hole in the abdomen? if not its unlikely to be intestines (theyd need to come out somewhere.
if he is sickly, dont be suprised if momma kitty snubs him, they know when somethings "not right" and will not usually waste time on a kitten they know is going to fail.
cats usually go 30-60 mins between kittens, but if your wondering if shes done and shell let you you can gently push on her tummy getting those fingers in there, kittens will feel like good sized lumps and often move. 2-3 babies is normal for a first litter/young mother.
