Connect To
This menu allows you to connect and import point clouds from other Cyclone products.
CloudWorx clouds always are read-only data. That is why the tree icon is a small red cloud 
. You probably have to extract the data with Convert Project or From CloudWorx in order to use it.
Example
With a project in meters, millimeter Distance Units means you are importing data in millimeters in your project. Thus, the data will be automatically scaled to match your project (1000 factor).