This is my understanding:
Along Vertical displaces along the vertical (Y) axis from the planet normal.
Along Normal displaces along the current normal of the surface (for info on the concept of a "normal" see this wikipedia article:
http://en.wikipedia.org/wiki/Surface_normal)
Vertical Only displaces only in the vertical of the current surface normal (I think).
Lateral Only displaces in the lateral, horizontal directions (X, Z) as referenced against the base planet sphere.
Lateral Normalized displaces laterally from the normal of the displaced surface (not the base planet sphere).
These are the kind of specific settings that require some input from development for the documentation. That information will be added to the Node Reference soon.
- Oshyan