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.

Automatically name text layers with text box contents
If this checkbox is checked, the first 3 words or so in the text box will be appended to the layer name displayed on the pipeline by default.

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.

Play a sound when a screenshot is taken
If this checkbox is checked, a camera/shutter sound will be played whenever a screenshot is taken from PhotoPad.

Default 'Save As' format
The preferred file format can be selected from the pulldown list which will be used as the default when clicking on 'Save As' on each project.

Contains all the settings that can be adjusted for the horizontal and vertical rulers on the canvas viewer.