Note: The default location of the Adobe Photoshop 7.0 Prefs file varies by operating system; use     your operating system's Find command to locate this file.

    Unexpected behavior may indicate damaged preferences. By removing damaged preferences,     you can restore preferences to their default settings.

C:\Program Files\Adobe\Photoshop 7.0\Help\help.html

    Preferences dialog box:

• Preferences dialog box will appear when you launch the program for the first time.
• Go to Edit>Preferences>General(Ctrl+K)

                                         
    Under General > keep color picker "Adobe".
    Interpolation chooses the algorithm used when making images bigger or smaller. Re-sample to     take away or add pixels. The Bicubic setting works best.
    Leave Redo key and Print keys to default settings, change the History States to 99.
    Under the Options, leave the default settings. If you use keyboard short cuts a lot then check     Zoom Resizes Windows. If you walk away from your computer during a process that takes a few     minutes, you can check the Beep When Done and it will beep to notify you when the process is     done.
     Click Next to continue settings.
         Keep default settings for the File Handling     dialog box.
      Click Next.

Under Display check >Use Diffusion Dither.
Under Other Cursors the default is Standard. Try Precise it's much more accurate.

Transparency & Gamut settings are something you can play with to see if you preferr to have larger squares or a different color than the default. Try it and see what you think.

Units & Rulers- I set Rulers & Type to Pixels because most of my work is web based. That's the type of measurement that is used for the web. This again is a personal preference.
Keep the Column Size to the default.
Print Resolution should be 300 pixels/inch.
Screen Resolution- 96 pixels/inch for PC's and 72 for Mac's.
Keep the PostScript checked.

Guides, Grid & Slices, these settings are personal preference. It doesn't affect your work. Guides are set to Light Blue, you can change it to any color. Under the styles the default is lines, you have the option to change it to Dashed lines.

Plug-Ins & Scratch Disks, check Additional Plug-Ins Directory.
The Scratch Disks Options are designed if you have additional hard drive space or if your hard drive is partitioned. With a partition you would direct the scratch Disk on the side of the partition that your program files aren't located. If you have two hard drives, locate the scratch Disk the same as the partition -- locate it opposite the programs file space.

Depending on the amount of RAM you have in your machine, you can change the amount used by Photoshop. I have available 426MB and I left the setting at the default of 50%. This way photoshop has 231MB available. If I were to have problems with not enough memory for Photoshop I would raise it to 70%. You can go as high as 80% if you need to.










If you want to control your colors you need to change some of the default settings.
First thing is to check the Advanced Mode. This is going to change how many options you have to choose from.

Check the Advanced Mode.

Keep the Custom setting at the top. Change the RGB to Adobe RGB(1998). When you do this you will get a dialog box asking you about embedded RGB mode every time you open an image. If you were using the default settings before you didn't have any message come up at all. If you don't like this you can always change it back.
Keep the CMYK setting to the default.
Change the Gray to Gamma 1.8.
Color Management Polices:
Change all three to Preserve Embedded Profiles.
Use the Adobe Ace engine.
Change the Intent to Perceptual.