The Bluetooth driver initialization settings configure how the Magic Utilities device driver gets initialized when the Bluetooth connection is (re)established with the computer on start-up or wake-up.

Direct Bluetooth initialization

For keyboards this setting should have no effect, but is uses a slightly different initialization method.

Default is unselected.

These options have been added as Windows does not always enable the Smooth scrolling feature of the Magic Mouse and Magic Trackpad.

Bluetooth driver settings

Smooth scrolling feature

This should be selected for the best scrolling experience in most applications. With Smooth scrolling enabled, scrolling is smooth "per pixel" and not jumpy "per text line".

In case Windows does not enable the "Smooth scrolling" feature, a dialog is shown with a Restart device option. Restarting the device usually solves the issue.

reduced scrolling performance

Note: Once Windows has enabled this feature you can turn it off or back on in the user interface, but if Windows misses this important initialization step, "Smooth scrolling" it's not available at all.

However, if you have ongoing issues with "Smooth scrolling", it can be disabled completely and Windows assumes the device is a normal mouse (and consequently the warning dialog will never appear again).
 

Direct Bluetooth initialization

If the "Smooth scrolling" feature is disabled, turn this setting on so the device automatically reconnects to Windows, otherwise you need to click the device for reconnecting on start-up or wake-up.

If the "Smooth scrolling" feature is enabled, this setting should have no effect but is uses a slightly different initialization method.