Screenies to tell the story. Eg you've added PseudoTV or some other addon to the menu and would like to tweak it.
After selecting the item choose "Edit Menu Item" from the slide out window.
The first option is to rename the item
The next interesting bit is to set the content type. Originally when a addon is added to the menu it's added as a addon, which controls the background and stats. The problem I had is what if the addon had TVShow content like our example PseudoTV, I'd like TVShow type backgrounds like "Live Content" or "Random Fanart" This can now be changed - in our example by choosing "TV Shows" in the next slide out window which asks for "Content Type"
Once you have set "Content Type" the next popup contains the code to run the addon, which can be adjusted. Unfortunately some of the commands are too long for the window and those cannot be changed. The other problem is XBMC always has the title "Enter the new label, which doesn't described what's happening.
Once back into the main skin settings window you can now change the background to something more interesting like "Live Content"