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Hello Russell,
thanks for asking.
Yes, "custom menu" refers exactly to what you define.
Regarding the error message: there's a subtle difference whether you
drag something *on* or *inbetween* items:
If you drag the folder *on* something, a rectangle will be drawn
around the entire item - and Remote Buddy will assume you want to
exchange the artwork for this entry. A folder, of course, will not
work for this.
If you drag the folder *inbetween* items, you just get a line
beginning with a circle ( o------------------ ), which shows, where
the new item will be positioned. Dropping the folder this way will
create exactly what you are looking for.
Hope that helps.
Best regards,
Felix