Template settings allow you to customize various additional aspects of how templates are generated.

Post excerpt length in characters
What portion of the post should be used as the post excerpt in status updates. The post excerpt is taken from the post excerpt field if that is filled in, but otherwise is extracted from the post content; so you can always customize your post excerpts for use in the template.
Date format
By default, XPoster uses the date format from the WordPress General settings. You can customize it here so that the format sent in status updates is more useful in context.
Custom text before/after status
Insert a string before or after all status updates. If there’s a piece of text you want included on *all* updates, you can set it up here. It will be added to all status updates.
Custom field for alternate post URL
Not a common thing to do, but if your posts are intended to link to an external page, and not be visited directly, this field can reference the target URL for your status update. It will be used as a substitute for the #url#
template tag.