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    <p>Mangento merges all config files needed into one big config file and stores this one in the config cache.</p> <p>Now, if we only have one config file, magento would be forced to load config data, that is not needed in the current area (frontend, admin, api) and would slow magento down.</p> <p>Only the config.xml is loaded always, all other config *.xml files are loaded on demand.</p> <p>In the frontend for example its no needed to load the system.xml or the adminhtml.xml since the contain only data use in the backend.</p> <p>In addition if you now the purpose of each config file, its easy to find what you need.</p> <p>To your second question, i think you are referring to the system configuration, stored in system.xml under system->configuration and admin pages created by individual modules.</p> <p>With the the field configuration in the xml field, you can create input fields, that will set config variables, since this is a vary basic process and there is not much space for modification, it can be configured via xml.</p> <p>For you individual modules, like in you example a file upload, its already getting more complicated. Consider all the possibilities in a file upload, where to store, which file types are allow, is there a max size, maybe you want to do some other checks or save the file name in the database. To make it more clear, try to imagine the xml that would be needed to define the admin page of "Edit Product"</p> <p>If you want to know more about this topic: <a href="http://alanstorm.com/magento_config_tutorial" rel="nofollow">http://alanstorm.com/magento_config_tutorial</a> this is a good start</p>
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