The Options dialog is accessed by selecting Options from either Tools menu or Tools tab. The first tab is the General options tab.
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.