The PDF manual (for MEP 2014 it's on page 194) says this about the 'Quick function':
Tip: You can activate or deactivate proxy files using the Quick function (view page
55) for a smoother playback. This is useful during proxy editing if you want to
quickly check how an effect will look on the original material.
How do others find this works in practice? I find it rather confusing.
https://dl.dropboxusercontent.com/u/4019461/MEP-QuickFunction.jpg
For example, I would have expected to see the preview look progressively worse as you enabled one to three of the options. But I see no perceptible difference between having all three enabled and just the 'Use Proxy objects'.
More surprisingly, the worst of the combinations was having just the top two enabled. Yet if I interpret the options correctly that implies that reducing resolution and frame rate of the original file (an MP4 size 1920x1080 in my test) gives an inferior result to doing so on a lower quality proxy MXV file.