Now begins the process of configuring Photoshop. This is achieved
through the "Color Settings" dialog (figure 1) found under the "Edit"
menu (Windows) or the Photoshop menu (Mac OSX).
The Color Settings dialog is the control room for the Photoshop CS
colour management system, and like all control rooms it can appear
complicated. The default colour setting is called: North America General
Purpose Defaults, but this certainly isn’t the best choice. So if the
default isn’t what is, and how do we make the necessary alterations?
I could answer the above question by simply writing US Prepress
Defaults but doing so doesn't really help explain why. Therefore, I will
work my way through each section of the Color Settings dialog in turn.
Note the Description box at the bottom of the dialog. As the mouse is
moved across the various pop-up menus, etc. you should see a short but
informative explanation of what each menu does. Also note the checkbox
labelled Advanced Mode; it's probably best that you select it now. At
least you'll now see everything that the Color Settings has to offer,
even if some are only applicable to the most advanced of Photoshop users.

Figure 1 - Photoshop CS Default Color Settings
The first section is labelled Settings and is a simple pop-up menu
with a list of pre-set Photoshop settings plus any that you may have
saved. You needn't worry too much about this section just yet.

Figure 2
If you are upgrading from Photoshop 6 or 7 it should be a simple
matter of selecting your previous saved setup. Notice that Adobe has
retained the Colour Management Off option for those users who find the
whole subject too complicated. However, whilst I don't recommend choosing
this option I am aware that quite a few new Photoshop users working on
the PC Windows platform find it the easiest to manage.
The next section is labelled Working Spaces (figure 3), and as I
discussed earlier the selections made here will determine the Working
Space of certain types of image/document.

Figure 3
There are four Working Space types in Photoshop: RGB, CMYK, Grey and
Spot (occasionally called Modes because they appear under the Image>Mode
menu). Since configuring the others follows a similar process I will
concentrate mainly on the RGB Working Space.
Also note that the term Working Space should not be confused
with Workspace. The term Workspace is used by Adobe to describe
the layout of palettes, menu bars, etc whereas Working Space relates
specifically to the various colour modes available in Photoshop.
RGB - Working Space
Clicking the RGB pop-up menu with the mouse will produce a list of
options similar to that shown below. I chose Adobe RGB (1998) because
it's the Working Space I settled on when using Photoshop 5. Notice that
Adobe RGB (1998) appears within a group of four Working Spaces, each of
which is device-independent. Typically sRGB will be confined to those
users solely interested in web design, ColorMatch is a favoured choice of
many Mac users and AppleRGB is apparently for Mac web design.

Figure 4
If you look just above the four common Working Spaces you should also
find options for Monitor RGB (green spot in the screenshot), and in the
case of Mac systems ColorSync RGB. Monitor RGB is simply the colour space
of your monitor as created by the Adobe Gamma utility or a 3rd party
software/hardware combination.
It's often claimed that Photoshop CS has no obvious way of informing
the user which monitor profile is actually being used. Well, a quick
check for Monitor RGB in the RGB Working Space pop-up should be enough to
put your mind at rest. If Monitor RGB is showing something other than the
profile you created when calibrating the monitor it is essential that you
investigate the reason and make the appropriate corrections. It is also
possible to select your monitor space as the Photoshop Working Space, but
this is not really a good idea. ColorSync RGB is only available to Mac
users and will reflect the settings chosen as part of the ColorSync
setup.
The actual list of options available for selection as Working Spaces
differs depending on whether you activated Advanced Mode, or not. If you
chose to activate Advanced Mode then the list of available RGB profiles
will be quite extensive.
Additionally, if you had previously been using another Working Space
such as BruceRGB then it should also appear as one of the options in this
extended list. If it doesn’t you can still create it yourself by choosing
Custom (yellow spot in figure 4 above). The dialog box shown below
appears and you simply type in the data as shown for the Primaries etc,
but remember to give this new Working Space a name and click OK.

Figure 5 - Description of BruceRGB
Bruce Fraser originally developed BruceRGB around the time Photoshop 5
shipped but it has long since fallen out of favour by the majority of
experienced Photoshop users.