Keep the parts of the dialogue box in mind as I'll be refering back to them in everything that follows. Now, let's begin to make changes.
ID: The first position, ID, is followed by a number determined by the server. You will not need to change this in any way. The server automatically numbers new rooms as you add them in. You will, however, need to know a given room's ID# so that you can link to that room through doors in other rooms.
Name: The second position, Name, you'll certainly want to change if you're adding in your own room pictures. You can tab through the spots to highlight them. Once highlighted, you can make modifications. Try changing the name of the room. Highlight the Name spot, and type a new name, then click OK. It's as easy as that. Your room's name, by the way, can be quite long and you are not limited in name length by the size of the visible space in that dialogue area.
Remember that while the room's name can be long, not all of a long name will be visible in the Go To Room dialogue box that users can call up.
Artist: The forth spot down, Artist, will be filled in only if you're making changes to an existing room that comes standard with the server. You can leave this spot blank for new rooms that you add, or fill it in if you know the artist's or photographer's name.
Remember that artwork on the web is still subject to copywrite laws. Artwork is property, after all. It's considered very uncool for you to take another Palace's rooms and put them in your own Palace. If you want to use another person's room or art for some other reason (like making an overlaid gif for a Palace link), contact the artist or a wizard of that Palace and get permission to use that picture or artwork. I really encourage you to create your own Palace rooms, and with relatively inexpensive programs like Bryce and Ray Dream Studio, even non-professionals can create very cool-looking rooms.
Other Options: The fifth position down, called Options on the Mac, contains a submenu you can access which itself has five parts: Private, No User Scripts, No Painting Allowed, Hidden From Room List, No Guests Allowed. On the PC these are listed as boxes you can check. They are self-explanatory except for "Private." Activating that means you can make that room lockable and it will appear on the Go To Room list with a dash (-) instead of a numeral like 0 for number of users in the room. The No User Scripts option is handy if you don't want users erasing props with the "clean" command, for example, or creating serious lag by zapping each other with one of the many dreaded zap scripts. The Hidden From Room List is handy when you want to store your avs in a room users can't see on the Go To Room list. (Wizards can see all the rooms on the room list, hidden or not). And finally, the No Guests Allowed means that only registered members of Palace can enter that particular room. I'll be referring back to these Options in later directions, so make sure you're familiar with them now.
Dang, I gotta make more coffee. I'll do that while you go on to the next section.