two really big problems with decals

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"Did I get that right - when you have the clamping flag turned on the tris where the u/v coordinates are not between 0 and 1 will be transparent?"

Yes. The edges have to be transparent. That was what Halo was trying to describe to you.

When UV clamping isturned on, anything on a texture outside 0..1 will use a color which has been pulled from the edge of the texture.

If you looked at a texture like this in the middle of a polygon, then you'd see the edge pixel colors stretched vertically and horizontally to infinity.

You can also position the texture so that instead of the texture being at 0..1, it might be at 2..3. You can scale it too.