SWF Settings
The JPEG quality number affects the quality of all images in the SWF except 8-bit GIFs and PNGs. The quality of a background image is entered in Movie > Background Image.
A low number means low quality and small SWF and a high number means high quality and a large SWF. All images are converted to bitmap format internally on import so the quality factor of imported JPGs is ignored. All images except 8-bit GIFs and PNGs are JPEG compressed on export to the SWF with the quality factor indicated here.
The amount of WAV compression is largely controlled by the number of bits used for the compression. A low number means low quality and a small SWF and a high number means high quality and a large SWF.
KoolMoves indicates the lowest possible Flash version necessary to accommodate the functionality in the animation and action scripting. There is no advantage in picking a higher version unless KoolMoves has made a mistake in selecting the version number which can sometimes happen if you use advanced action scripting.
KoolMoves by default exports to the swf all images and sounds at the beginning of the main movie or the movie clip which references those images and sounds. You may want to change that to export when they are referenced rather than at the beginning. The first method causes a pause in play back at the begining; the second method can cause jerkiness as the movie plays.
You can ignore the backward compability option unless your movie is exported as Flash 6. Flash 6 handles dynamic text differently than Flash 4/5 because of the introduction of action script text fields. In Flash 4/5, the variable name was the object name but in Flash 6 an instance name was also added. So, txt1 = "hello" works for a swf exported as Flash 4/5 but not for a swf exported as Flash 6 unless this check box is checked.
If you create components in action script, check "include components library " so that code will be added at the beginning of the movie to load KComponents.swf.
Flash 6 movies can be Zlib compressed in order to make them much smaller (about a factor of 2 on average). The disadvantage is that the movie will appear blank if the Flash player is version 5 or lower.