Use Notepad++ as your editor, because it indents the menu (config.xml) so that you can clearly see the structure. Take your existing config.xml, or the one from the previous post, and have a look at it - the structure is really simple. Start at the <Menu> line, everything between that and </Menu> controls what you see on the screen. All of the sections start with <xxxx> and end with a matched </xxxx>, and there are only really three elements to a menu - List, Path, and Item Action. With a couple of minutes of inspection of existing menus it will become really clear. This post
will also help.
Have a look at this post
for an indented menu, where you can see the nested structure more clearly.
I'm fairly certain that you can't have a menu item for individual movies as you are suggesting - you need to launch XBMC, then use the library manager in XBMC to organise your movies and TV shows.