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Who is he?
The alien symbiote that attaches itself to a host and endows them with enhanced athletic abilities, but at the expense of killing them slowly. Originally just a new suit for Spider-Man in the "Secret Wars" storyline, the costume turned into a full fledged character who had it in for Spider-Man but also had a bit of an anti-hero streak to him.
How could he work in the movie?
You could argue that "The Amazing Spider-Man" takes more influence from the "Ultimate Spider-Man" comics than any other line and in that regard Venom could work differently from his portrayal in "Spider-Man 3." In the "Ultimate" line, Venom isn't an alien symbiote but the result of a science experiment. The symbiote would bond with someone that has cancer or another disease and would protect them from internal and external harm, and they're designed for specific users. The symbiote was designed for Peter's father so it worked for Peter. After the transfer of the symbiote, the film should create Venom as the anti-hero that he becomes but also show his competitive nature with Spider-Man.
Who should play him?
Another way you can differ this movie Venom from the "Spider-Man 3" Venom is by not having Eddie Brock play the character. Take influence from the current Venom, Flash Thompson. Chris Zylka can reprise his role from the first film as the now war veteran Flash Thompson who uses the symbiote for the government.
(Photo Credit: FayesVision/WENN.com)