Okay, I will respond to bandit, and also try to seal the gap in this conversation that Dauer and I have created. With regards to the Lubavitcher rebbe, first a little history lesson for non-Jews. Chabad is a Jewish revival movement that began when the Jews were ghetto dwellers. Nowadays it seeks to reconvert assimilated and reformed/conservative Jews to orthodoxy as they believe such Jews are in danger of being assimilated(or if not them their kids or grandkids). The leader of the Chabad movement was a Charasmatic and powerful Rabbi who had a gift for healing with prayer and who did more for Judaism then pretty much any other single man in the last few hundred years. When he was alive, most chabad followers would have said that he was the best candidate for being the Messiah. Though this topic would anger the Rabbi whenever it was brought up. When he died, the majority of the people in the Chabad movement dropped this claim. This is because someone can only be the Messiah while alive. It seems from the link dauer provided that a few Chabad groups still believe he was the messiah and will be reincarnated, this is a heterodox belief and one that is not accepted by most Jews. Though Judaism believes in Reincarnation, for someone to fulfill the Messiah prophecy they must do so in their current life.
This kinda ties into bandits questions which I will answer one at a time:
1. Yes, I firmly believe that the Messiah will be flesh and blood. He will be a regular human Jew, and a member of King David's family line. Ideas about the world after the Messiah are conflicting. He will create peace and answer all questions that people have by uniting the entire world in the worship of G-d. Life will then be an eternal sabbath(rest), where G-d's name is glorified constantly, and all of mankind will seek to do good works. It is interesting, but the Messiah will be totally mortal and he will even have children that he may pass his kingship onto. He may have the gift of prophecy and miracles, but he may not. The Jews are first and foremost pragmatists, and the idea that G-d would send anything but a regular man to liberate us has never been part of Jewish beliefs.
2. The Messiah will end Jewish exile, and restore the greatness of the Jewish state in Israel. He will also rebuild the temple. The idea that Judaism will then become the dominant religion is not a factor. Humanity will be unified in its worship of G-d, but this does not mean that all Humans will necessarily convert to Judaism.
3. A truly orthodox Jew will take the entire Torah as "literal". I personally feel that the events after the Flood are literal, and that the chapters preceeding this are a great divine metaphor which G-d uses to teach creation to a spirtually elevated but scientifically lacking group of people.
EDIT: I would just like to say, and this belief is not shared by Jews everywhere, but I feel that it is definitely possible that Jesus could, if he were reincarnated, be the Messiah in his next life. I feel in many ways it will be the job of the Messiah to restore the unity to the Abrahamic religions, bringing together Christian, Muslim, and Jew under one branch. I do feel that the differences between Judaism, Islam, and Christianity, are surmountable, and we certainly do not need a supernatural person to show us all the ways in which we are the same. In fact, to do that you would just need a pen and a few blank pages

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