Yes, you can insert new menus to the functions palette with the dir.mnu file.
LV 6, from the functions palette, tack it down (pushpin) and select Options (upper right). Edit palettes->New Setup->Type in a new name (IO Tech) In an empty space on the Functions Palette, right click->Insert New menu and choose the dir.mnu file. In LV 7, do similarly through Tools->Advanced->Edit Palettes