Thank you for the info. FYI
I found the desktop folder in:
/usr/share/matchbox/vfolders/
and the .desktop files are in:
/usr/share/applications/
what I did:
1. create a new vfolder in /usr/share/matchbox/vfolders/
(i.e. Network.directory)
2. edit /usr/share/matchbox/vfolders/Root.order and add the new vfolder name to it
3. edit .desktop files in /usr/share/applications/
I think this line controls which folder it shows up in:
Categories=Application;Network;
This page is helpful:
http://projects.o-hand.com/matchbox/docume.../mbdesktop.htmlUpdate: some of the .desktop files contain unicode (international?) characters, which chokes up vi. I saved some changes anyway, and bricked matchbox desktop as a result. beware.