The Preferences window is found under Artboard > in the main menu. The menu is tabbed for Editing, Performance, Options and Switches preferences.
Automatically close paths
When drawing Irregular Polygons, Bezier Paths and Freehand Paths the paths will automatically close when you finish a path at its starting point. Uncheck this setting if you prefer paths not automatically close (default – checked).
End points of closed-loop paths treated as a single point
Paths whose end points are coincident are treated as a single point when moving them or their control handles.
Return-key inserts a new line when editing text boxes
Changes the default behavior so the Return-key goes to new line when editing text boxes. By default, when editing text boxes use the key combination CMND-Shift to go to next line; Return-key ends text editing.
Allow inline images in text boxes
Images can be dropped into text boxes from the Image Browser, becoming in-line with other text.
Display feedback window when dragging objects
Displays page coordinates or object dimensions as object is dragged or resized (default – checked).
Sets the smoothness of the Freehand Path tool to fine, smooth, or very smooth (smoothness is related to number of points).
Record up to __ undoable operations
Sets the number of undo operations available when using the Undo command (the default is 24).
Faster, lower quality drawing when zooming and scrolling
Enables automatic use of low-quality rendering during operations that require rapid redrawing, such as zooming and scrolling, to speed performance.
Turning off anti-aliasing preference improves performance while editing large files (default – checked).
Turning off shadows at very high zoom improves performance while editing large files; note, the zoom scale can be set by the user (above 800%; default – checked).
Show template chooser when launching application
Template chooser opens automatically on application launch (default – checked).
Curve handles and rotation knobs can be displayed a normal or large size. Large size makes selecting object handles easier when zoomed out and on large format screens.
Option – scrollwheel zooms drawing
Allows magnification of the view to be changed using Option-key + scrollwheel (default – checked). Check to invert scrollwheel zoom direction changes sense of scrollwheel zooming.
Individual tools remember last style used with it
When switching between tools, the style will change to the last style used with the tool.
Style Dropper remembers last style used
Style dropper remembers last style it picked up.
Enable Autosaving and Versions
Enables Autosave and Versions support for Mac OS X "Lion". If unchecked, the classic document saving methodology is used.