In the Effects section you have the following options:
Enable Smooth Scrolling: This enables Smooth Scrolling in list boxes and some other programs, like Internet Explorer. This setting applies to the current user only.
Enable renaming of the Recycle Bin: This option adds more options to when you right-click the recycle bin. It enables you to rename the recycle bin like the other folders and shortcuts on the Desktop. This setting applies to all users.
Enable Classic Desktop (Win 95 look): This option enables the classic "Windows 95 look" without the quick launch toolbar and active-desktop possibility. This setting applies to the current user only.
Disable window animation: This option allows you to eliminate the animation effect when minimizing and maximizing a window, which is present by default. This option is really useful on older computers when you need to make things easier for the computer. This setting applies to the current user only.
Show window contents while dragging: Use this option to see the entire Windows while moving it, instead of just seeing the border. NOTE: This option requires that at least Internet Explorer 4.01 is installed. This setting applies to the current user only.
Open Windows Explorer on My Computer: When you double-click the My Computer icon, you can now choose to open the MS Explorer. This setting applies to all users.
Show Windows version on desktop: Shows the Windows version in the bottom left corner of the desktop. If you have enabled the Active Desktop then this option wont have any effect. Works in Windows 98/2000 and Millennium. This setting applies to the current user only.
Smooth edges of screen fonts: The edges of the fonts fades out, can make smaller text a little blur.
In the Icons section you have the following options:
Increase Icon Cache size: Increase the size Windows uses to cache the currently showing Icons. This option increases the size from default 512 to 2048. This setting applies to all users.
Enable all possible colors: This option can show icons using 16-bit colors instead of just 4-bits. This setting applies to the current user only.
Wrap long titles: This option wrap long icon titles to be displayed on multiple lines instead of just one.
Clear Cache: Use this button to remove the ShellIconCache file, in which Windows caches the icon information. It can sometimes happen that the file gets corrupted and your icons are displayed the wrong way, then it's a good idea to use this button. This setting applies to all users.
Rebuild Icons: Push this button if your icons looks weird or the wrong icon is showing. This will make Windows reload them. If it doesn't help you with your problem, you can then click on the "Clear Icon Cache" button, and then on this button. After that, reboot your computer. If you are using Windows NT4 and you have strange looking shortcut icons, this is the way to restore your original shortcut arrows. You might have to do the described operation a couple of times.
Size: You can choose between Small (16px), Default (32px), Big (48px) and Huge (64px). This setting applies to the current user only.
In the Miscellaneous section you have the following options:
Hide Internet Explorer Icon: Use this option if you want to remove the Internet Explorer Icon from your desktop. This setting applies to the current user only.
Hide Network Neighborhood: Use this option if you want to remove the Network Neighborhood icon from you desktop. WARNING: Hiding the Network Neighborhood can lead to serious problems (for example with UNC names). Deactivate this option ONLY if you are sure that you don't need any network-functionality. This setting applies to the current user only.
Hide "Shortcut To" for new Shortcuts: When you create a new shortcut, Windows, by default, names it "Shortcut to...". This option allows you to remove the "Shortcut to" prefix. This setting applies to the current user only.
Detect accidental double-clicks: Detects if you accidentally double-clicked, if so windows ignores it. This setting applies to the current user only.
Show Active-Desktop on right-click: Use this option to remove the Active-Desktop line on the pop-up menu displayed when you right-click the desktop. NOTE: This option also makes it impossible to have gif images as backgrounds. This setting applies to the current user only.
Show IE Channel Bar at startup: Shows the Internet Explorer Channel Bar automatically every time you start your computer. This setting applies to the current user only.
Auto end programs on exit: Automatically shuts down "Not Responding" apps on system shutdown. This setting applies to the current user only.
Beep on errors: Makes the computer beep every time an error occurs. This setting applies to the current user only.
Enable rapid refresh: Makes the desktop refresh more often without you having to press F5.
In the Shortcut arrows section you can change the shortcut arrows. You can choose between None, Small and Normal. You can see a preview next to the dropdown box. You can also browse to find the icon you want to use as a shortcut arrow. This setting applies to all users.