mysql master slave replication scenario
If you want to setup slave from another slave steps would be as follows


Flush tables with read lock to lock the slave so it should not get updates
show slave status\G and note master co-ordinates
Take backup now using mysqldump
unlock tables to unlock the slave
transfer that backup and restore it to new one
Hope you have issues grant replication slave on master so need to use change master on the new slave and give co-ordinates noted in step-2


For details regarding master-slave version difference, shouldn't be a big issue but a good idea is to go through MySQL documentation.

Hope it helps