Although my favorite language is Ukrainian, I really like the Russian goodnight "спокойной ночи" which literally means "have a calm and peaceful night."
Oh really? Never heard such an expression nor seen in books. Maybe it is a regionalism.
no actually, there is not. There is a dobranich/добраніч (or na dobranich) which means sweet dreams (exact translation would be good night)
In English, "good evening" can be used as either a greeting or a farewell; is "Добрий вечір" the same in Ukrainian, or is it only ever used in one of those situations?
the "Ч" in this sounds more like a "Ш" am i hearing this wrong or is this actually how it is meant to sound?
They're related. As you know, Ш represents a voiceless fricative sound very similar to the SH in English. Ч (and the English CH) generally represents an affricate. Affricative consonants are just fricative sounds preceded by a plosive/"stop". In this case, what's basically a T sound crammed up against a SH sound.
It's not surprising there's overlap. Similar things happen in many languages.
You hear it so because it's actually soft here. In Ukrainian, there are hard (velarized) and soft (palatalized) consonants, and, unlike in Russian, Ч may be either hard (as in чай) or soft (as in вечір).