Indian passport for US born child - questions and issues

[kumaoni]

Me and my wife are Indian citizens , here in US on H1 and H4 visa respectively. We are expecting our kid in March 2013. We are aware that we can apply for Indian passport for our kid as long as we register the birth within one year and do not apply for US passport. However we had few more questions:
1. Can the child travel back to India on Indian passport? Will there be issues while going out of US or entering India?
2. Later on if the kid gives up Indian passport and takes up US passport, can he/she apply for PIO or OCI card? Even if we are located outside US in India or elsewhere at that time?

Please let us know

Any help is appreciated

Regards

[immihelp]

1. Yes. No problem.
2. Yes. Yes.

[kumaoni]

Thanks

Thanks a lot for your quick and precise reply. Appreciate it greatly. Helps a lot. Great Service!!

A quick follow up:
I am assuming that we do not have to apply for a 'entry visa' sort of thing on the Indian passport of the child while going back to India. Sorry for the dumb question but its a new thing for me that someone is going back to India with a 'new passport'

1. Yes. No problem.
2. Yes. Yes.

[immihelp]

Indian passport holders do not need any visa to enter India.