Races

One reason that people raise Chao is to enter them into races. There are multiple races, and winning them is required to 100% the game. If you want your Chao to be good in these races, you need to raise all of it's Stats (Swim, Fly, Run, Power, Stamina, Luck, and Intelligence) up to a certain level. The stats needed depends on the race and the difficulty.

To enter your Chao in a race, you will need to visit the Chao Stadium. The entrance to Chao Stadium is behind the waterfall in the Chao Gardens (Neutral Only). Choose the "Chao Race" option in the Chao Stadium's menu. You will be able to pick a race from the ones available to you, and can enter any Chao you have.