Movieclip on movieclip (Kirupa xml menu)

Hello,

I only know a little bit of flash, but have been able to follow all of senocular’s excellent article on xml menus in flash here:
http://www.kirupa.com/developer/actionscript/xml_dropdown_menu.htm

except that I cannot for the life of me figure out how to:
“ii Create a background movieclip and position its top left corner in the center of this new menuitem movieclip.” from this page:
http://www.kirupa.com/developer/actionscript/xml_dropdown_menu5.htm

I think I need a more detailed step-by-step instruction for this one sentence.

my interpretation is:
choose insert “new symbol” (movieclip)
draw rectangle
name it menuitem, click export for action script

choose insert “new symbol” (movieclip)
rectangle from above disappears
draw new rectangle
name it background, do not click export for action script

But then menuitem is no longer visible in the window you see when you click on movie clips in the library… so, how do I position movieclip on movieclip, do I have to drag an instance to the stage?

Is background even needed if you want pure white background?

I have successfully converted this menu to a horizontal menu and pasted the code into my project. I get no errors, but when I run the movie I do not see any menu items,I am suspecting it is this movieclip problem.

Thanks for any help.