OSD issues DENON AVR 2807

Ok so after reading the manual for the tenth time (at least)....I decided that I am getting nowhere with the OSD situation. There is a chart or graphic within the manual that shows the relationship between video signal input and monitor signal output according to the video convert settings. This is found on page 14 for all who would like to follow along ;-). On this same page in the bottom right hand corner are three asterixed items *1, *2,*3. I am curious about the on screen display and its ability to be superimposed on video signal and output (*1). So my question to my fellow AVR 2807 owners is that does this mean that :
1. Will the OSD be superimposed on the screen via composite cables?
2. Does superimposed mean that I will have the ability to see what I am watching and OSD at the same time?
3. Will I risk image resolution by sacrificing my HDMI monitor out for a composite monitor out?
4. If my TV only accepts 480i,480p,1080i signals will this affect my OSD? (Philips 60")?
5. I do not want to run two sets of inputs to my monitor just one?

I promise this is the last time I bring up OSD as it is probably an easier problem than most!!!

Thank you to all who help!!