I've been doing mosaics for awhile and everyone is different, so here's what I do. As for the grout...Did you mix the grout yourself or did you use premixed grout? And also was it sanded? Pre-mixed grout, I do not like. I used it when I first started doing mosaics thinking that it would be easier and less messy than mixing it myself. It just ruined my pieces. I ended up with cracked grout and it just doesn't fill in the spaces as well. Sanded grout is all I use and when mixed correctly it works great. I usually let it get to the consistency of peanut butter. Although, I have heard of people having it runnier, just depends on the person.
As far as the glue, I started using Liquid Nails adhesive that dries clear. It doesn't have the bad odor. The tube I have I bought at Lowes and it says 'Fresh Scent'. I've used lots of other glue but this one works for me, but again, everyone's different.
Hope this helps!