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Reference:
Preferences: Saving (2)
Save link to movie / Save movie inside document

To save disk space, choose Save link to movie. The original video will not be copied into your Videator document. To make sure the video remains with the Videator document, choose Save movie inside document.

If you
edit the video by deleting part of the video or adding additional video, Videator will always save the modified video within the Videator document and will not change your original video file.

Thumbnails

Set the size and type of thumbnails dragged from the Image Drag Well in the Toolbar. You can choose TIFF, JPG, PNG, or GIF. TIFF and PNG support transparency. The size value pertains to the maximum edge of the thumbnail graphic; i.e., if it’s wider than tall, it’s the size of the width.
JPEG Image Quality

Slide the slider left for smaller files of lower quality and right for larger files with better quality.
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