What does -keypool=1 do? I am doing some test, and am getting weird behavior with keypool.

In the 0.4.0rc1 bitcoin client:

If I set keypool=1, how many times should I be able to do getnewaddress?

Are there any resources where I can read about keypool, and how it works?
You can do getnewaddress as many times as you want. The keypool parameter just sets how many extra keys the client creates when it needs to create keys. With keypool set to 1, the client will create one extra key every time it needs to create a key.

Setting keypool low will keep your wallet smaller. But it will mean you have to backup your wallet more often to avoid losing the keys to newly-created addresses.