inscribed and circumscribed radii of the robot used despite footprint being set

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This is a bogus warning stemming from a bug in costmap2d. You can safely ignore it. (you can sometimes safely ignore it, see update below). When you set a robot footprint, costmap2d computes inscribed and circumscribed radii from the footprint, so you it doesn't make sense to set these parameters yourself. However, the warning is issued before the computation. I've issued a pull request to fix that:

https://github.com/ros-planning/navigation/pull/43

(I've also included your change in wording, David.)

Update: I just realized that what I wrote above is not quite correct. By "bogus warning" I mean that costmap2d issues that warning even when your inflation radius is safe; my pull request fixes that.

However, of course you need to set an inflation radius which is greater than both your inscribed and circumscribed radii. Your circumscribed radius is sqrt(0.7^2 + 0.45^2) = 0.83, so your inflation radius needs to be >= 0.84.