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As far as the item menu goes I think either is fine. Your current setup looks good to me, and it's really a matter of preference. If you have time later and decide you want to change it then do so. If it works and is function for now leave it as it is. Focus on getting a complete working product first.
@squidgetx: This looks better each time you make a new post. Great work man, this i gonna be quite nice! ^^