The Drawing Settings can affect how your shapes react to each other when you're drawing; normally your new drawings will only snap to existing ones when within a certain distance, but you can change that distance so that they will snap from farther away or else won't snap unless they're very close. This works for connecting lines, smoothing curves, recognizing lines and shapes, and click accuracy.
Flash Tip: Customize Your Flash Preferences
By Adrien-Luc Sanders, About.com Guide
The second tab is the Editing tab, that controls how your Pen Tool--one of the key tools in editing your shapes--behaves and displays, and also controls the options for your Text Tool's vertical text options (not the default, but here you can set it as default).
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