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In the "options" field you add your items divided by ";". For example:
test1; test2; test3; test4
This should give you (depending on what you have chosen in Type) either a popup menu or multiple choice list of:
Thank you for your help! I knew it had to be something simple I wasn't doing.
You can also add the first option to be blank in a popup menu if you use a ; before the first item in the list. That way it will appear blank to the end user, and they will know to use the dropdown to select an option.