So - if U set this up - the following can happen ?

* If you start a game with the YELLOW button then the above all takes place

* If you start a game with the NORMAL start button , then the game plays like you have set it up for your own choice ( as in the game retains your EB selection settings and any other menu changes you have made etc

In other words you have the CHOICE of playing wither way WITHOUT losing your personak setting sin 'normal mode'

Yes 

Correct. Normal play as is and you can switch from normal to tournament any time by pressing the green or yellow button to start.
In Tournament Mode only the points for the highest score show up. Second, third and fourth place only shows the persons name without a score. The game gives you a bump and win score which you need to beat to qualfy for a place. At the end of tournament, first place gets 50% and the other 3 get an equal share of remainder.
I also noticed that tournament is only 3 balls and you do not get extra ball (even after winning extra ball).