What HTML Editor Settings do? Where will i find it in the admin panel?

This feature is in General Settings of the admin panel - the feature adds an ability to select from a series of currently available 2 html editors - the Tiny MCE or Innova - also there is a 3rd option to allow members to select which html editor they prefer one over another - if you select 3rd option the a user will be able to pick the editor via 'Selling Preferences' view of Members Area - NOTE: also here you can customize a set of buttons that will be available for members - a full customization screen for each editor can be found by clicking on the appropriate link next to each option - see illustrations below -

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