Just had it pointed out to me that the name is a reflection of the SetName and not the item name.  Sorry 

On that window you could probably get away with labeling the dropdown as "Select Set:" rather than "Select Type:" to avoid the confusion.  When I saw the "Select Type:" label there, I expected to see the Item Type names rather than the set names.  In retrospect, since you can have more than one set of a given Item Type, selecting an Item Type wouldn't really tell the system where the item is supposed to go.  Hope that helps cut the fog of my confusion   Thanks!