Well there are two solutions.
1st: fill the pool with water. (yes it will be leaking)
Get a small bowl and put some dish soap in it.
Next tape a sponge or a rag (or something you can apply the soap with) and scrub down the sides with the soap. Because the soap reacts with water and releases oxygen (or Co2, I'm not sure) when it does, it will bubble up and reveal where the leak is.
I think that's the most reliable way. Another way is only reliable if the leak is large. You can make everyone get out of the pool and listen very carefully at each side. If the leak is large enough you'll hear a sizzling.
I think that the first method would be more efficient, but the second sounds like it might do the job as well and would be easier.
To fix the hole, I believe that you'll have to fix it with a patch kit. The link below lists a few different options. It's essential to have a patch kit when you have a vinyl above ground pool because it's incredibly easy to get a hole in the side. I'd suggest buying a quality patch kit to insure that the patch lasts. You don't wanna waste the 120+ dollars on annoying recurring holes in the side.
http://www.google.com/search?rlz=1C1CHMY_enUS340US340&sourceid=chrome&ie=UTF-8&q=vinyl+pool+patch+kit#q=vinyl+pool+patch+kit&hl=en&rlz=1C1CHMY_enUS340US340&prmd=ivns&source=univ&tbm=shop&tbo=u&sa=X&ei=y_38TZi-N7LTiAKQ7dmIBQ&ved=0CEoQrQQ&bav=on.2,or.r_gc.r_pw.&fp=731789854f5bd5b4&biw=1280&bih=685
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