Were the Jews expecting God Incarnate? Christians believe Jesus is Emmanuel, God with us. (Isaiah 7:14)

Furthermore Christians believe that the only Son of God is Our Lord Jesus Christ. (Apostles Creed)

And since Christ = Messiah and Lord = Elohim, Christians believe the Jesus is God, the second person of the Trinity with two natures, fully man and fully divine.  

Did the Jews, who are still in expectation of a Messiah, expect that when He came that the Messiah would also be God, or were they expecting someone less magnificent?
Yes they were, in fact the problem was not that they were expecting something less than God in the flesh, the problem was they were not expecting a lowly appearance. They expected his return in glory and judgment when he establishes peace forever -- what we now understand will happen at his second coming. It was his humanity, not his divinity, that tripped them up.