If I choose to run a program like IE virtually from settings is it running completely virtual in the memory like in Virtual kiosk or just sandboxed =like partially limited etc.)?
Yes it is.
The manual sandbox and the virtual kiosk share the same virtual space.
If you download a file to the desktop in a browser running in the manual sandbox, then open the kiosk, the file you downloaded will be sitting on the desktop in the kiosk.
Thanksm that was nice to notice.