I think that my illustration is correct but I wanted to be sure... as the source "Gutter connect" is a good 3 feet higher than the top of the barrel I think that it will always fill the barrel & use the overflow when full and when rain is flowing (pipework is 3/4" schedule 40) even though it will have the water pressure from the 25 gallons+ sitting above the pipe connection at the barrel. Once the rain stops the pipe will backfill to where I've marked in Green I guess?
If the 3/4 pipe can't cope with the volume of water (unlikely from what I've seen from my other one of these barrels) then there is a secondary overflow at the downspout which will automatically re-direct water away down the usual path onto the yard.
I just wanted to double check my thinking before I go to all the hassle to do this. There are definitely "less hassle" ways to do what I want to do with this but doing it this way will give me some other advantages that I won't bother going into here. The reason I can't make the connection higher up on the barrel is due to placement of a window.
Thoughts please

Rain barrel by salty_monk, on Flickr
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