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The Step Sizes dialog controls how far the view moves when the 3D Navigate menu is used.
When you click the menu command:-
- Rotate Left / Right, it will rotate the view by the angle specified in the Rotation (Horizontal) box.
- Rotate Up / Down, it will rotate by angle specified in Rotation (Vertical).
The distance moved by the other non-rotation controls is set to the value of Pan.

Remember that these step values only apply to the 3D Navigate controls, which are only enabled when in 3D view.