#1: Uncalled for. Feels clingy/psycho-esque. I think it might be a good idea to tell him what you think on the birthday issue. I don't think he'll find your answer very satisfying (based on this guy being socially awkward/somewhat creepy) but it's better than nothing and if anything will creep into his subconsciousness the idea that everyone has a different view on things.
#2: I did the same thing too with a girl who told me she liked me, that is somewhat avoiding the person. It felt bad. Second person who was interested in me I tried to be more natural about it. It was a bit awkward for me, but I at least don't feel bad about it as much as if I avoided that person.
Unless you physically feel threatened by this guy, I think it might be a good idea to be "normal people and friends" with him. It's going to feel awkward, but it'll help his social skills and help you in the event that a similar situation occurs again in the future.
My own feelings regarding #1, phrases like these feel like it shows the person to either be tactless or self-centered. Both traits undesirable. But then again he's socially awkward so I'm not sure if these are his personal traits or just traits due to lack of skill.