Hello,
yes, correct. You can create a pond downstream of the dam and prescribe all the walls as impermeable (2 2 2).
However, if you use the Finite Volume scheme HLLC for the outlet you can prescribe also a "free outlet" (4 4 4) if you are sure that there you have supercritical flow. I don't know exactly why but with the other schemes this condition doesn't work that good.
Enclosed you will find a dam-break case where I defined a constant water level at the inlet.
At the Telemac website there is a link to the 2014 proceedings and if you are logged in you can download the proceesings.
By the way, the questions are not so trivial and 3 weeks in the Telemac world is not that much
Hope this helps,
Clemens