Right. Arguments are options passed through to a program as its run (as you probably knew

)
The biggest problem is, while there are unnofficial standards, there's not really a set standard for arguments and the like.
Usually, they're in the form of
/ or - in windows.
So, say "C:\Program Files\My Game\My Game.exe" -config mygame.cfg -res 1024x768x32
The -config and -res entries (with the data after them,) are the arguments.
As for where to enter them - I'm going by 0.88/0.088 (whatever, I've already removed it again

) and it doesn't have a "Start In:" entry in the icon properties - it has an actual "Arguments:" field (in which, in my example, you would enter:
-config mygame.cfg -res 1024x768x32
And yes - the place you'd find those would be from your existing shortcut on your startmenu or on your desktop. In a standard Windows shortcut, it would be in the Target: box - after the path to the .exe (which will probably be in quotation marks.)
Target: "C:\program files\my game\my game.exe" -config mygame.cfg
Is how it would look in the shortcut properties.