Questions about droplets and dialogs and passing variables

Wondering if anybody can offer some insight or point me in the right direction on my first Studio project.

I have an existing AS droplet that I am trying to adapt(as a Studio Droplet)
to replace a value passed with a dropdown menu built with a third-party OSAX.

The dialog is a simple window with the pull-down and two buttons: “cancel” and “process”. The values in the pulldown are populated dynamically then passed to rest of the script.

1)I’ve got the dialog to appear/work in a regular app, and it appears during build/run, but I can’t quite grasp how to call it after I “drop” my folders onto the app. I’ve tried the “load nib” etc, but no luck. I’ve also tried a few other things gathered from the board with no success. If I remove the need for the input from the pulldown, my original AS code works fine when placed within the “on open names” handler.

2)From what I can tell so far, I need to stick all of my orignal code within the “on clicked theObject” handler for the process button. This just doesn’t seem right to me.

Hoping someone can “open my eyes”

below is the code without my “processing” of items:

on idle
	(* Add any idle time processing here. *)
end idle

on open names
	(* Add your script to process the names here. *)
	-- Remove the following line if you want the application to stay open.
end open

on will open theObject
	tell application "Finder"
		set the_settings_folder to alias ((path to "sdat") & ("Settings:") as string)
		set myList to get (name of every file of the_settings_folder whose name ends with ".trc") as list
	end tell
	tell menu of popup button "theButton" of window "theWindow"
			delete every menu item
		end try
		repeat with tempItem in myList
			make new menu item at end of menu items with properties {name:tempItem, title:tempItem, enabled:true}
		end repeat
	end tell
end will open

on choose menu item theObject
	set theSetting to (name of current menu item of theObject)
end choose menu item

on clicked theObject
	tell window "theWindow"
		set theSetting to (name of current menu item of popup button "theButton")
	end tell
	if name of theObject is "processButton" then
		close window "theWindow"
		--does my orignal code all have to go in here?---------
display dialog theSetting
	end if
	if name of theObject is "cancelButton" then
	end if
end clicked

…and dug into the supplied examples. The “Archive Maker” project was extremely helpful for droplets.