Use of comma and colon

I have been given the following section, and I need to identify the grammatical errors.

It is a common setting for Hawthorne: a New England town set around a church, symbolizing the Puritan values that the villagers strongly upheld.

Is the colon to be replaced a comma?

If yes, why?

Are any other corrections necessary?

Also, I have been asked to identify the grammatical errors in the given section.

The title of Hawthorne’s story, “The Minister’s Black veil,” seems itself to lend much meaning to the story.

The revised section:

The title of Hawthorne’s story“The Minister’s Black veil” seems itself to lend much meaning to the story.

The comma in each case, that is, after story and after veil, was deleted.

Is the revision satisfactory?

The pronoun "itself" seems to be erroneously placed. How should it be used?

Are any other corrections necessary?

Kindly explain.