Tools / Session transcript gives you access to the session transcript, which is useful if you want to store everything you're doing on the MUD to a file. Note that transcript options are not remembered between sessions, but if you want, you can have KMuddy transcript for you as soon as you login - just check the 'Start advanced transcript when session starts' in MUD preferences.

The Advanced transcript is a special version of the standard transcript. It is useful if you want to have a transcript running all the time. You can have the transcript split by date, and you can (in MUD preferences) set up advanced transcript to run immediately after connecting. It also offers you a choice to append timestamps at the beginning of the log. Note that this feature is somewhat confusing at the moment, and will be improved later on.