is that supposed to set the correct strength of the bone strength?
No.
As I understand it:
Region binding makes bone strength become more a measure of
distance control, how far a bone can control, and bones only compete where areas of influence overlap. (note: points outside a bone strength area will be controlled by the nearest area)
Flexible binding (the default) means bones can affect body parts
without being affected by distance, so bone strength is more a measure of amount of control, competing with the other bones.
Thus, region binding enables you to adjust your bone control
area more visually, rather than the default flexible binding where bone strength indicates the bone's
amount of control over the whole layer.
Changing to region binding changes
how your bones control your points. I think most people find it more useful, unless you want a really "rubbery" character.
Personally, after trying different styles, I'm in complete agreement with Eric - most of the time I prefer layer binding (more of a cut-out style than a squishy flexible style, and you can ignore bone strength), and if I'm using vector shapes (as opposed to bitmap pieces) I often manually bind specific points directly to specific bones rather than accepting the automatic binding (this is also how you used to have to do it before bone strength and automatic binding was introduced).
Regards, Myles.