Excited and hugging one chum (8)
I believe the answer is:
animated
'excited' is the definition.
(animating is a kind of exciting)
'and hugging one chum' is the wordplay.
'hugging' is an insertion indicator.
'one' becomes 'i' (Roman numeral).
'chum' becomes 'mate' (I've seen this before).
'i'+'mate'='imate'
'and' enclosing 'imate' is 'ANIMATED'.
(Other definitions for animated that I've seen before include "Lively in diamante" , "Lively - brought to life by Disney?" , "full of spirit" , "Fired" , "Enlivened (like a cartoon film)" .)