The only absolutely necessary setting in the plugin is selecting the "Edit Menu Item". This refers to the menu item that leads a user to their user profile edit screen. If you don't have one of these links set up, do it now.
The rest of the settings change how it behaves for different users on the site. The most likely configurations you'll want to make is to Un-Require the TOS fields for your administrators. By Un-Requiring these fields, your administrators will be able to edit a profile without being force to agree to terms.
This is where the "Required" setting of the TOS field comes into play. By setting a field as "Required", it becomes available within the Un-Require fields setting of the System - Required Fields plugin. The best practice is to select every required field in "Un-Require" so admins may freely edit profiles without being forced to fill in details they may not know.
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