I read that the translation of "what do you mean?" is что вы имеете ввиду?
1) Which is the correct or better form: ввиду or в виду? Or there is no difference?
2) What is the literal translation of иметь ввиду?
I know иметь means "to have", and according to Wiktionary ввиду means "in view of", so my rough guess is that the literal translation of иметь ввиду is "to have a view", and the literal translation of что вы имеете ввиду? is "what view do you have?"