Hello,
Regarding your questions:
1) The module doesn't provide this ability, it can display horizontal menu on the first level.
2) It works. Capitalize text transform do the following: transforms the first character of each word to uppercase. The module uses 'text-transform' CSS property, you can read about it
here.
3) CSS rules can be used for this purpose. Specify what colors you want to change and we'll try to help you.
4) The module is based on
YUI Menu widget. Information about menu style can be found in
Skinning Reference section.
Regards,
ARI Soft