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Administrative Permissions and data sharing on user profiles



I am  in a process of configuring our organization's salesforce to share data among users and roles properly and here are several questions I have that was not able to find info in force.com documents:


1) On user profile there is a section Administrative permissions and there are numerous options, but I don't know what most of them mean and implement. Anyone who can provide a resource where this is explained?


2) I have my Hierarchical Roles set up eg Manager to Employee.... and also I specified in one my my custom objects that users can view all customobject but edit only their own. I did this on the profile level and orgnization wide sharing where I set the the "Public Read Only" property for the object in question, but the user is still able to edit everyone's records.


Any help will be very much appreciated.


Thank you.

Best Answer chosen by Admin (Salesforce Developers) 
I fixed my problem. It had a sharing rule overwriting my settings.