Naveen,
1) The section Debugging Projects of the CCSv5 Getting Started Guide contains a section that explains how to display raw images from a device memory (a simulator is also considered a device).
2) Despite I am not familiar with the particular libraries, typically simulators are useful to evaluate algorithm functionality and performance. For that we have the core simulators for the C674x and ARM9 cores. If you intend to simulate peripherals such as video ports, Ethernet, and others, keep in mind this can be done in a much more limited way by the Device Simulators. OMAPL138 has no such simulator, although a similar DSP-only device has: C6747. Additional reading can be seen here.
3) I am not familiar with these libraries, therefore you will have better luck asking these questions in the device forum or searching in the TI wiki.
4) I am not familiar with this library. You will have better luck asking this question in the device forum, as they may have additional details about its availability and usage.
Hope this helps,
Rafael