First, here's a couple of sites to get you started on some of the common to all cameras settings. Check these out and you will understand photography and cameras a bit better.
Digital Camera Help
Shortcourses
The others have been answered for you....
2. 03m, 2m, 4m, 3:2m, 7MN, 7MF.. and Which Is the Best For Me to Have Mine Set On.
Set it on 7MF. That is the largest picture saved at the best quality. Your pictures will be around 2.5-3 MB in size. Approximately 500-550 photos will fit on a 2gig card. The result will be the best quality photo you can get from the camera.
3.ISO.. Mine is Set on Auto.. Is That Okay..
If you use auto mode, you can't set the ISO. If you use any of the M, S, A, or P modes, you can set the ISO. At ISO 800 and 1600, your photos will have a lot of noise in them. ISO 400 isn't too bad, 200 is decent for this type of camera and below 200 is the best. As said, you need higher ISO when you can't get as fast of a shutter speed as you'd like or as large of an aperture as you'd like.
My suggestion is, outdoors, set at 64 on very sunny days, 100 on medium sunny days, and 100-200 on less than sunny days. Indoors, 200 if using flash and 400 if not using flash. The camera isn't the greatest indoors because ISO 800 or above is very noisy.
4. Digital Zoom, On or Off
Was already answered, but this is important. Never use digital zoom. All it is doing is the camera is cropping the photo which you can do yourself much better in software on the computer.
5. My Camera (Fuji S700) has a spindal, if you will, on the top thats has N, N/Flash, Auto, "M", "S", "A", "P", SP2, SP1, Picture Stabilization.. Which One Should I Use..
M, S, A, and P are Manual, Shutter priority, Aperture priority, and Program shift. After learning some stuff about photography, you will understand these settings and won't have any use for any of the other settings at all.
N and N/Flash is Natural light and Natural light with flash. The N/Flash will take 2 picture, one with and without flash. These settings will set the camera for what the camera's software thinks is good for taking shots in natural light. I'm guessing as an example, a photo of someone sitting by the window and using the sunlight shining through to light their faces. When you understand photography and how aperture, shutter, and ISO relates to each other, there's no reason to every use this mode.
SP2 and SP1 are scene selections. They set the camera up for a default setting for sports, landscape, portrait, sunset, and night shots. Again, learn photography and you'll set it up yourself in Manual mode rather than what the camera thinks would be good. There are 2 of them that have the same presets. It just allows you to have them set at 2 different settings so if you used sunset and portrait a lot, for example, you don't have to change it all the time.
Picture Stabilization. This just forces a higher ISO so that it gives you a faster shutter speed than it would in auto mode. Again, when you understand photography and how the camera shoots, you will be able to know what ISO to set it at depending on what you want to do, rather than the camera deciding for you.
Added: You'll notice there are some other settings with this camera such as color and sharpness. I tested mine out with these settings and the results were to just leave the color and sharpness alone at their default settings. Just some further info for when you see that in the manual and ponder what they do.
It's a nice little camera for not so much money once you learn how to use it further than just in auto mode.
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