The "Create Features" dialog is a new dialog added in ArcGIS Desktop at version 10. However, it conflicts with ArcFM editing, and most users who use the normal ArcFM editing method do not wish to see this window pop up.
Typically this will come up when you start editing, but sometimes it can come up other times, such as when posting or closing a session.
To disable it, start "AdvancedArcMapSettings.exe", located in the ArcGIS directory (C:\Program Files (x86)\ArcGIS\Desktop10.0\Utilities).
On the "Editor" tab of that application, uncheck the "Create Features using Templates". and click "Apply". This should prevent the Create Features dialog from appearing.