If I right click on any item in my library in windows 7, there is an option for optimizing folders for _____. What is this? If i optimize for pictures, does it mean that it just gives me more higher resolution thumbnails?
When viewing a library, press F1 or click on the "?" in the corner to get to the relevant Windows Help and Support documentation. Where it explains library customization, it says:
Optimizing a library for a certain file type changes the options that are available for arranging the files in that library.
This is referring to what you see in the "Arrange By:" drop-down menu in the library views.
This is similar to an option that's available when viewing a folder normally, outside of the Library section of Explorer. There, if you right-click to get to the folder properties, and go the Customize tab, the option is "Optimize this folder for..." instead of "Optimize this library for...", and it changes the sorting and grouping options.