If you have not heard yet, Settings Manager will be removed from MicroStation in a future TBD release; however it has been replaced by much better functionality.
For a while now, Bentley has provided a better solution that supercedes Settings Manager -- DGNlibs, Tools, Tasks, and Templates. The ability to migrate any functionality you have created in Settings Manager into these items also exists.
Bentley wants to give our users one last opportunity to migrate/update what they are currently using and start the process to migrating from Settings Manager.
There is a Wiki page that will give you some guidance on getting the settings manager data migrated into the new functionality. This will also give you time to get any problems worked out before there is no longer the ability to work with the old data. While there is not an exact date/version of when Settings Manager is being removed, this announcement is being provided to give our users time to migrate what they are currently using.
Here is a link to the Wiki page outlining this workflow: Migrating Customizations to MicroStation V8i
There is also plenty of information in the delivered HELP documents on what DGNLIB files, tools, tasks and templates are and how they can be used, along with Be Communities, if you should have any further questions on possible workflows with these features. Should you run into any technical issues you can contact the technical support group and they should be able to help you through any problems you are encountering.