I don't know if I follow you here. The EOS flash system by default uses flash as fill in Av and main light source in P. The custom function simply forces the shutter speed to 1/250 in Av, I don't think it changes the flash behaviour - in fact I believe you'd get less flash output say in a situation where without flash Av exposure is 1/320 at f/8; with this function enabled you'd be overexposing at 1/200 even before you added the flash. Now in darker situations where pre-flash SS is slower than 1/250 (say it was 1/125) then I suppose it does turn flash into main lighting with darker backgrounds. I don't really understand the advantage of this function since you already have P mode with flash acting as main light; M for full control - seems to me that leaving Av mode with flash as fill has a big advantage. Main Av drawback is you need to remember that it is fill AND unless you use high speed sync you'll overexpose in bright light (and can't use onboard flash for fill in bright light).
First off, I'm speaking of my hacked 300D and more modern Canons may be different. Don't think so, but maybe.
As you know, if the flash is the sole light source the shutter speed has no effect on exposure - the flash intensity and duration, aperture and ISO are the only factors involved in exposure.
Absent the high-speed flash option in high-end flash units, the highest shutter speed that can be successfully used with flash on my 300D is 1/200 second.
If I set CF 3-1, shutter speed in Av mode is forced to 1/200 whenever flash is used, while CF 3-0 allows the light meter to set shutter speed, just as it does in P.
I normally use CF3-1, so when I want the flash to be the primary light source I select Av and set aperture as required. If I want some fill light I'll choose P and let the meter select shutter speed and aperture.
Example:
These shots were illuminated by tungsten light and flash - normally a bad idea, since it's difficult to get a good white balance in all parts of the picture.
As you can see, in P mode the default is fill flash.
Actually, with CF 3-1, Av mode functions as M mode with the shutter preset to 1/200. Exactly what I want most of the time in mixed light.
Edit: the reason the Av shot is brighter is that I used FEC. If I'd used EC instead the two would be roughly the same exposure. My bad.
-js

but in M it doesn't ?
