More than likely he's using v4.0. I actually came in here to ask the same question
From what I've read, v4.0 doesn't allow you to make any changes to the quality settings for whatever reason.
My problem (and probably the original posters as well) is that the later versions which do allow you to modify the quality settings create videos that lock up after 4 seconds for whatever reason.
I posted elsewhere but I just need a version of the AMV conversion tool that supports 160x120 (or whatever), can be set to 'medium' and doesn't create videos that lock up after 4 or 5 seconds.