I guess no one really answered your dominant vs. recessive trait question, huh? I've never kept balloon mollies, so I can't give you a definitive answer as to whether the fry will have balloon bellies, too. My best guess would be that it's recessive. I read that balloon mollies were created by breeding certain fish with spinal deformities. Anyway, I know for sure that guppies have 22 autosomal chromosomes, therefore being a close relative, mollies must have 22 as well. This can be an interesting experiment, these baby fish of yours.
More toward the practical side of things...sometimes, female balloon mollies will have a bit of birthing trouble due to their shape, so keep an eye on her for sure. I'd guess she'll drop them in about 1-3 days, but it's hard to tell at this point. Her first batch will most likely be 10-60 fry, and in about another 4 weeks she could have another batch. Female mollies can hold enough milt (fish sperm) for up to 5 subsequent fertilizations.
I've found that Molly fry appreciate floating plants to hide in, and nibble algae off of. Be sure to crush up your flake food very finely, and feed the mother well after her delivery. After about 3-4 weeks, the fry like to browse around for food on the bottom. Break off a piece of an algae wafer and let it sink. They'll just go to town. I know mine do
Let us know how the birth goes! Good luck, and have fun