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Is the order in which we declare various parameter's, settings .. in config.xml file very strict , such as
adminhtml-layout> tag should always come before adminhtml-menu> tag?
is it that strict or order of declarations can be varied and magento automatically detects it.
which way is the right one?
There is no restriction for the order. Just remember to keep the correct paths.
For example config->global->models can be placed anywhere, but it has to have this path.
All the config files are merged into one large xml that is parsed when needed by using tag1->tag2->....
