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Usage lets you know how many kilobytes of data you've used so you don't eat up too much of your data plan. This will launch a menu that includes all of your chatting options, including "Take a Photo or Video" and "Choose Existing".
Whats App uses the regular data plan on your phone rather than an extra add-on service like SMS.
I recommend doing this so Whats App keeps you informed just like your regular texting service does. This will let you send messages to everyone you know directly through the Whats App interface.
(Don't worry, there are ways to block and unblock contacts.) After that, you'll need to confirm your country and phone number, and Whats App will send you an SMS message with a confirmation code.
In the Settings section, there are two very useful features: System Status and Usage.
System Status gives you access to the Whats App Twitter feed, so if you're ever having a problem with the application you can go here first to troubleshoot.