Show handles on connectors is selected to make the handles visible on connecting lines. Normally, this would be selected, since the handles are used for moving connections and bringing up the connector pop-up menu. This option could be unselected to show how the diagram would look when printed.
When Change default box sizes is selected, any time a box is resized, the default size for new boxes is set to this size. This is useful if you don't want to use the standard box size. You can set this option, create a box, resize it to the size you like, and it will be used as the default size.
Show reduced view brings up a window showing a reduced view of the diagram. This window can't be edited.
The arrowhead options control whether arrowheads are drawn on connecting lines by default. (Arrowheads may be added or removed from indiviual connections at any time from the connector pop-up menu.)
The Box and Connector options selection simply brings up a help box which tells how to get the box and connector pop-up menus to appear.
Set drawing size … brings up a dialog box which allows setting the diagram size - up to six pages wide by three pages long.
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Don't select graphic objects is used to prevent pasted-in graphics from being selected when clicked on. This is useful if you have pasted in a large graphic (for example a large rectangle surrounding a group of boxes) and the graphic is selected when you try to select one of the boxes inside it.
