This part of "Node Params" contains everything that has to do with a daemon's representation and orientation in the viewport. The settings under "Node" depend on the preferences for your 3D software package. There you have to determine which axis serves as a height axis. For some programs it is the Y axis, others use the Z axis.
Simulation
This setting offers three options to choose from – the default is “Active”. This means that the emitter (or any other object) can contribute to the currently opened scene, while “Inactive” disables the selected item. Inactive emitters cannot pour out particles. If the daemon is animated, you will see its movement, but without any influence on the scene. “Cache” is a very clever feature. It allows you to read already-simulated particle sequences and use them for further interactions, e.g. with rigid body dynamics. In this case you will not have to calculate the fluid again and again in case of changes.
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