[bkury]

"Added filter submenu for horizontal menu"  What exactly does that mean ?

If you select Movies and press your down key, you should get a filter sub menu now (Recently Added, Genres, Years, ...), if you press down again you should get to the normal sub menu (Settings, Quit, Reboot, ...)
Isn't that what you wanted?
 

Is it anything to do with "dashboard" ? I have disabled dashboard in skin settings because I don't really know what its for ?

No, dashboard (screensaver) is a different feature. In short, it will show you the configured widgets when the screensaver is active. It works best with the screensaver set to "dim" with a short 1-5min activation time, so everytime your system is idle it will show you some useful information like time, weather, recently added media, ...