TheoryOfRelativity:
"a piano player who has never palyed a piano?"
Consider that dexterity and an ear for tuning preceded the piano, yet found its greatest expression in such. This is a classical theme of adaptation.
"My thought a while back was that genes hold the memory of early genetic forms, thus the fact the gene can then replicate the tree is no mystery, the information regarding the tree (an earlier life form) is there in the insects genes."
The problem with this is that most creatures are extremely unrelated. The tree branches out in such a way, as to make common ancestry to be found only in a long-dead animal, and none of its progenitors. Moreover, this was once considered a possibility, and even thought to manifest in the development of embryos, but it has since been shown not to be so. One has to take into consideration whilst anyone gene may be present in another creature, many genes are unique to that creature alone, and ontop of that, are arranged in such a way as not to permit the manifestation of another creature's characteristics.
"The question is why not all? Why do we adapt in different ways in same environment?""
This is simple. Most enviroments admit of a variety of adaptations which allow for finding of several distinct niches. For instance, in one tree, you have creatures which live at the very top, amidst the leaves, whereas others are burrowed down deep into the root structure. The same tree, markedly different adaptations. One must also recognzie the fact that it is utterly random. That is to say, that there is no conscious drive to adaptation present, and in fact, many creatures fail to adapt as they simply do not have the genetic manifestation of the traits necessary for such. And most adaptations are not as perfect as we'd like to think. They simply work and work well enough to become a reproductive benefit.