@BrentB: As all KUAL buttons, those are *target* buttons. (i.e., they say what *will* happen if you tap them). Meaning you can only devise the *current* behavior by knowing all possible settings and proceeding by elimination (what's not shown is the current behavior).
Granted, it's far from optimal, but this 'radio button' usage of KUAL with more than two choices is fairly minimal, even if I'm prone to use it ;p.
The added trickery in this very specific instance is that the new behavior only applies to newly processed covers... So once you've made a choice, it might be a good idea to clear the cover cache right away to see how it actually behaves
.
For reference, the full set of choices (with a star to denote the defaults) is:
White Borders (*)
OR Black Borders
Letterbox (*)
OR Stretch
OR Crop
PInfo Watermark
OR No PInfo Watermark (*)
No Dithering
OR FS Dithering (*)
OR Riemersma Dithering
Periodicals
OR No Periodicals (*)