Afaik, this is the intended design, it was meant to always stay in DirectV mode(sans programming), and the buttons correlate to the functions of each unit (av1, av2, tv)are programmed to the right buttons on the remote. So the switch on the top, is only used for programming, once that's done, it is to remain in D* mode.
As for the lower right popup thing, you do not have to turn it off, just press Exit, or Guide located on the remote, and it goes away.