We discuss the ground state and the small-amplitude excitations of a degene
rate vapour of fermionic atoms placed in two hyperfine states inside a sphe
rical harmonic trap. An equations-of-motion approach is set up to discuss t
he hydrodynamic dissipation processes from the interactions between the two
components of the fluid beyond mean-field theory and to emphasize analogie
s with spin dynamics and spin diffusion in a homogeneous Fermi liquid. The
conditions for the establishment of a collisional regime via scattering aga
inst cold-atom impurities are analyzed. The equilibrium density profiles ar
e then calculated for a two-component vapour of K-40 atoms: they are little
modified by the interactions for presently relevant values of the system p
arameters, but spatial separation of the two components will spontaneously
arise as the number of atoms in the trap is increased. The eigenmodes of co
llective oscillation in both the total particle number density and the conc
entration density are evaluated analytically in the special case of a symme
tric two-component vapour in the collisional regime. The dispersion relatio
n of the surface modes for the total particle density reduces in this case
to that of a one-component Fermi vapour, whereas the frequencies of all oth
er modes are shifted by the interactions.