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With this option someone who enters your domain name in their browser will be redirected to another site. The new site will appear in there location tool-bar at the top of their browser.
This is the same as "standard redirect" except the original address (your domain) will be visible in the users location tool-bar. You should note that this option will encapsulate your website in an HTML Frame.
This is the same as "Cloaked redirect" except it will pass parameters to the URL you specify. This would allow you to point the link in your web pages to your domain.
For example if you setup the domain http://domain.com to forward to http://www.myisp.com/myaccount/ and you had a page called prices. HTML you could enter http://domain.com/prices.html into your browser and you would get your prices page.
When setting up a path redirect the from section should not contain a path ( http://www.domain.com/ is OK and http://www.domain.com/someotherdir/ is not OK ). The To address should also be a directory ( http://www.domain.com/mystuff/ is OK, http://www.domain.com/mystuff/index.html is not OK ).