You are rather overstocked unfortunately. The Colombian shark can reach 12 inches +.
Okay, depends how old the Oscars to whether they are sexually mature. Digging pits in the substrate is certainly something a breeding pair of Oscars will do. If they're going to breed, you will also see them cleaning off a flat rock, or the nearest object to that. Unfortunately, Oscars will clean rocks, shovel gravel etc and never breed, it's just instinct with some of them.
Not letting other fish anywhere near where eggs are going to be laid is extremely common. This is common in nature, not just fish. They obviously don't want any disturbance or the chance that the eggs will be Eaten.