The Strength slider determines just how bold the color and opacity of the shadow are, and determines how bright it remains before it fades off to the edge.
The Quality dropdown lets you choose just how much detail will go into the shadow render.
Creating Drop Shadow Text in Flash CS3
By Adrien-Luc Sanders, About.com
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You can also adjust how blurry the shadow is; by default changing the value to make it crisper or softer will cause it to adjust both on X and Y parameters, but you can change the default setting so you can adjust them individually.
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