Yep - on my Mark 1 (i.e. VR I) version of the 18-200mm if I run around with my camera in my hand facing down, the lens may slowly creep out (i.e. extend) depending how much I 'shake it around' - obviously as the lens gets older and more worn it apparently gets more common... In the Mark 2 (your VR II) version they added a manual lock, so when you are not using the camera you can wind the lens up to 18mm and then flick the switch to lock it so it can't extend (just remember to unlock again when you go to use it)...
The Normal/Active is what type of VR you want (i.e. vertical, of full vertical & horizontal) - remember if you pan with your shots (following moving object) you don't want the horizontal VR on (Active IIRC).
You will have 2 other switches, one being VR on or off; and the other the usual M/A (Auto with Manual Override) or M (Manual) Focus options. Note also if if you are shooting fast (i.e. low aperture like f/1.4 up to f/4 or so with fast shutter) you don't really need VR, especially if you have a steady hand (the 18-200mm will just sneak into this when wide open with it's lowest aperture). Likewise if using a tripod, etc, turn the VR off...
So anyway that's 4 switches total - people like me only have 3!
Hopefully some of that is helpful...