Firstly, your expression for $I^*$ does not agree with your Euler equation: if you write $I^*$ as you did, the Euler equation should be $\ddot{x} + \lambda x = 0$. (In fact, you have a general sign error. The correct Euler equation for the geodesic is $\ddot{x} + |\dot{x}|^2 x = 0$, if the sign were as you wrote, the solution would not be a trigonometric function, but rather an exponential function.)
Now, to compute $\lambda$, you need to use the constraint $|x|^2 = 1$ twice. First, take the dot product of the Euler equation with $x$, you get that
$$ x\cdot \ddot{x} + \lambda |x|^2 = x \cdot\ddot{x} + \lambda = 0$$
Second, take the second time derivative of the constraint
$$ 0 = \frac{d^2}{dt^2}(|x|^2 - 1) = \frac{d}{dt} (x\cdot \dot{x}) = \dot{x}\cdot\dot{x} + x \cdot \ddot{x} $$
Comparing the two equations and solving for $\lambda$, you have that $\lambda = |\dot{x}|^2$. Hence the correct Euler equation is in fact
$$ \ddot{x} + |\dot{x}|^2 x = 0 $$
For your second question, the $A$s and $C$s (a total of 6 free variables) are fixed by the initial data: the initial position and initial velocity of the geodesic. In other words, you have that
$$ x_i(t) = A_i \cos\left( |\dot{x}|^2 t - C_i\right) $$
and you want to solve for $A_i, C_i$ for prescribed values $x_i(0)$ and $\dot{x}_i(0)$. (Of course, the initial data must satisfy the constraints that the velocity vector is orthogonal to the position vector, and that the position vector has norm 1.)