The Options dialog is accessed by selecting Options from the bottom of the Tools menu.
If the Tools menu is hidden, expand the menu bar by clicking on the v button to the left of the ? help button at the top right of the window.
Show welcome dialog on startup
If this checkbox is checked, the Welcome to PhotoPad dialog will show at startup, asking you how you would like to begin and giving you options to open a new file, create a new blank image, or to create a collage.
Prompt to save images with layers as PhotoPad Projects on close
If this checkbox is checked, you will be prompted to save images with more than one layer as a .ppp when closing PhotoPad.