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This is about both "real" terminals, and 4Pane's terminal emulator. The first sub-page deals with terminals.
4Pane uses terminals in three ways. It can launch a terminal application (e.g. xterm) via Tools > Launch Terminal (Ctrl-T); 
it can open a file in a terminal by double-clicking it (or using Open); 
and it can open an application in a terminal with a user-defined tool.
The top three items on the page all have the same format. On the left is a list of common choices, with the currently-used one highlit. 
Select whichever you prefer from the list. To the right is a box for you to enter others if you wish (pressing OK adds each to the list).
The first item lets you choose which application to use in "Launch Terminal"; if you write in a different one, you'll probably just need the application's name. 
The second does the same for Opening an application in a terminal, either directly or from a user-defined tool. This time the command will need an extra option e.g. "xterm -e", 
so if you add your own you'll need to know what you're doing. The third item is similar, but only for user-defined tools where you want the terminal to stay open 
once the command has ended so you can read the output e.g. "df -h". Again you'll need extra options, and not all terminals can do this (e.g. gnome-terminal).
The other sub-page is for the terminal emulator and command-line.
First the prompt. Type the format you want into the box. You can use normal characters, and also any of the following options: