What Colour refers to is the selection of the Axis where you tell the Monster to follow the path. See the image below.
First you create the path. Then you select your character and select Pick Path. The next step is to check Follow Path and select a Follow Axis, usually -Y for a forward motion.
For exporting you used a very low resolution. You should aim at 1280x720 as Colour suggests. You set the resolution as part of the export settings.
An NLE is a non-linear editor, which is another term for a video editor. Usually, we split an iClone project up in manageable scenes of a about one minute length. These get rendered separately and are then put together in a video editor.
For quality purposes it is best to render in iClone without using any codecs. This is either uncompressed AVI, as Colour suggests, or as a PNG image sequence, which is the way I do it.
You then edit everything with the highest possible quality in the video editor and then at the very end when you render the complete movie you decide on compression. This is usually WMV or MP4. I use MP4 as this is what YouTube recommends and what gives me the best quality.
For short tests I often render directly in iClone into MP4, which is one of the options.
Whether you go with YouTube or Vimeo is a matter of personal preference. I believe Vimeo has certain monthly quota for what you can publish unless you become a premium member. I like YouTube, because it gives me better exposure and also provides viewing statistics, which I find helpful to see what worked and what didn't.