When the dialog appears, it displays a list of the folder paths that are currently shown on the menu.

To add a new folder to the list, click the Add... button and select the folder from a standard folder dialog.

To delete a folder from the list, select it and click the Remove button.

When you've finished modifying the list, click Done or press Esc to close the dialog. The new list of folders is saved automatically each time you add or remove a folder. The folder list is stored in a file named folders.ini inside the ShellToys XP installation folder.