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As far as I know, the configurations determine what modules you are allowed to purchase. A P1 configuration is the lowest level and gives you somewhat limited upgrade possibilities, P2 is the standard that should suit most companies, and P3 is the high-end that allows you get purchase aero sheet metal and stuff like that.
Now. Do I find this retarded? Yeah, kind of, haha - but whatcha gonna do about?
You don't just have to pay for stuff that you kinda shoulda had all along, you can't even pay for some modules unless you have a "costlier" base package.
P1 lets you do the basic things; P2 lets you do more advanced things with more automation; and P3 is the advanced functions. Of course, the price varies accordingly.
Most companies use the P2 level of CATIA.
here's a good description I found on the Eng-Tips forum:
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