android-x86 installation modes
Breakdown of menu

Live CD (no installation at all): everything will run in memory, with access to the hard drive.

Live CD VESA: allows you to do things like setting graphics modes and displaying images without needing to know the hardware details for every graphics chipset.

Live CD DEBUG: basically a developer mode, also for troubleshooting.

Install Android to hard disk: installs to hard drive, to be accessed like a regular PC.



For more information about VESA see Wikipedia: Video Electronics Standards Association.
Also check out VESA Graphic Modes - a guide.