Thanks for the thoughtful answers guys.
I've been meaning to read through the responses in more depth and follow up on them, but haven't gotten around to it. A few days home sick gives me that time.

And folks, keep the discussion respectful! Flame throwing isn't going to convince anyone, and only causes chillul hashem.
@CBS
I'll start with your first post since it was so clearly written.
let me first start off with, that i agree with some others here that since everyones got their own opinion etc..itll be very hard to have a normal conversation, and i also tried having conversations with people that fall into the category you're describing and in my eyes there is no use in trying to convince or even discuss opinions with them because the conversation wont go anywhere at all. (hours conversations i mean!)
i will now quote a few things that maybe i can clarify -and some things i wont discuss because some things ppl may take in the wrong way.
1st things first, there is no 2 Chabad Movements. There is one Chabad Movement. The categories you described can be said as "in the Chabad movement there are diff views/perspectives.
#1 - the only people that believe such a thing are and must be (very) crazy. that is against nature for something like that to be and many many people witnessed a levaya, and especially that the Rebbe's health situatuon in the last 2 years before '94 was grave and did not get any better. - i dont think i need to explain it really but if you believe it then you fall into my category of someone i refuse to discuss this matter with.
#2 - this is a tough matter to discuss, and true that most people (if not everyone that doesnt fall into Categoriy #1) believe this. so here is where the 2 views are: theres Meshichistim (we're not discussing #1 meshichistim) and "anti Meshichistim". the main difference is, if the guy will go around publicizing the paraphrase "yechi..." . He who does publicize yechi, does not believe that the rebbe is physically living, by saying Yechi he is pronouncing that the Rebbe is Moshiach and when he says he shall live forever it means, through his "children"/chassidim doing what he wanted from them and following in his path - it spiritually is making him live forever and there is no difference now that there was a physical concealment. and one should not think that because he was niftar, that the rebbe is less holy and it wont help to ask brachos etc....(this concept is explained in chassidus in depth and length.) and this guy holds that this is what the Rebbe wanted when he said and made big campaigns that we should publicize the Coming Moshiach and how its so close, that we should tell people that the Rebbe is Moshiach.
The "Anti-meshichist" will will not publicize that the Rebbe is Moshiach (A.K.A Yechi) although he may beleive that in his heart, but that is nothing wrong because everyone can have their own belief that they keep to themselves. On the other hand he doesnt disagree with this that the Rebbe is spiritually living forever and by us doing and learning his torah etc.. keeps him "alive" (like ya'akov avinu lo meis). and he obviously will fulfill the campaign of the Rebbe to tell people Moshiach is near, but not discussing who it is, because that is not the point and it can cause conflict.
#3 - im not sure what u mean by embodiment of G-D. so if you will clarify that i can try to explain it.
Another point on #1, that mainly the people that say this stem from the Yeshiva Gedola in Tzfas. and they are a minority although they do make a very large noise, and they will not ever visit the Rebbe's kever for this reason! so that is off my Map.
there are plenty of people in US that practice #2 in both perspectives and regarding #1 those bochurim and few other people mainly come from Tzfas as stated above and they learn or live in Crown Heights becasue the want to be with the Rebbe in his shul!
regarding the Shlit"a , so besides the tzfatim that will obviously write that - so the Meshichistim in #2 will sometimes write that because they dont like to mention the Rebbe passed away because it shows on something less holy and since he's not physically here so people may take the wrong approach at it, so they write Shlit"a
as for the disturbing videos you see, those are tzfatim in #1 mainly, and some Meshichistim in #2 that want to still feel the way it was before '92 and they believe that any minute now the moshiach will come and the Rebbe will walk through the path and they want to be ready for it. but again its mainly #1.
True that in israel its much stronger there, and mainly thats because its easier to do it there because everyone is jewish and can understand whats going on. it practically makes no sense to do what they do in manhattan or else where where majority isnt jewish.
and there are many more tzfatim in israel which go crazy and make lound noises.
1. i think since the Rebbe made a huge campaign about moshiach in the later years and like no other rebbe has done, so it triggered somthing there, and since the Rebbe was so Great in the world (even in the eyes of other Rebbe's and other chassidim) so it was something very special, and most people thought that since there was so much Moshiach talk etc.. that moshiach was coming then any minute, and couldnt take in the fact, (face the fact) that something like a passing away was possible at that state, and everyone then believed that the Rebbe was Moshiach. so when the passing came about there was a group of people that were dancing and happy because they said forsure moshiach is coming now and from there it spread.
2. Yes but in israel its more publicized
3. i answered that question above
4. i dont want to state my opinion in any of this (i tried to avoid it in this post) for the reason that it will start a major arguement and i dont like to discuss things that have no end to it. here im just stating Facts. - and all i can say is that #1 people have some issues
5. that i dont know and i just hope it doesnt go too much farther, because a lot of this is pushing people away from Chabad for no good reason and a bunch of stupidity.
i hope i clarified the situation for you, even though ive got much more to say but i dont want to discuss.
if you have any questions on this feel free to ask!
The average non-meshichist would consider a strong meshichist a member of the same movement, or as a member of a deviant movement? After all, you write that category #1 is someone you wouldn't even talk with.
Also, I understand the concept of someone's influence extending beyond themselves and their lives. But if you truly believe the reason you wrote, isn't that almost a busha to the previous Rebbe's who aren't spoken of (or at least not to the same extent) in the same language? Why doesn't the Ba'al Hatanya merit having Yechi chanted about him?
You write that most of the ppl believing in #1 are from Tzfat. Due to the danger and the bad name they give Chabad, do the other Chabadniks actively challenge them on this? Meaning, do they try to keep them excluded from leadership roles, educational roles, PR roles, etc?
Thanks for your answers, and if you already answered any of my above questions in the subsequent discussions, I apologize.