Under the Videos section we start to get into some more interesting options. First off Library, as mentioned above, is a feature we will be using in the near future. However, the defaults here are very good with one exception. Go ahead and enable Update library on startup to give XBMC one more chance to make sure the library is updated as often as possible.
If you have anything you’d like to change feel free otherwise make note of the Clean library… option. This will remove any library entries that may have had their files deleted or renamed and can be handy to run every so often.
Under Playback we find some pretty technical options. The defaults should be fine for most setups and people (which is why they’re the defaults). However, there is some room for adjusting playback (especially of standard definition content) to personal preferences or system configuration.
On stronger systems I would suggest setting Post Processing to be Enabled for SD Content. This should help take the edge of lower quality SD content when you’re used to watching HD.
Apart from that, if you’re curious about some of the other options (such as Display 4:3 videos as) see XBMC’s wiki entry on them here and adjust as you like (though I would error on the side of leaving things as they are unless you fully understand what the options are changing as some of these could have some pretty annoying sideffects!).
Some additional options for File (not Library) view. However, just in case we have to drop into File view at some point enabling both the Extract thumbnails and video information and Clean file and folder names can be a good idea.
This can simply be skipped unless you have a reason to modify the settings here.
If you’re using optical media you can adjust the settings here to make the media a little more user friendly.
Once adjusted as needed hit the Escape key and move on to Music (next page!).