Ah yes, I did make a few assumptions with the install script. I’ll edit it to reflect the changes you recommended.
When you say that the menu doesn’t work for you? In what way does it not work? I’d like to fix it

I wrote that I would post come comments on the service menu, and here they are:

1. The install script assumes that your KDE config files are stored in ~/.kde4. This is not always the case – some distros use ~/.kde, for example. I think you can use ‘kde4-config –localprefix’ (without ”) to get the path instead (not sure using $KDEHOME is safe; it was not exported on my system).

2. Another problem with the install script is that it also assumes that ~/.kde/share/kde4/services/ServiceMenus/ exists. This was not the case here.

3. Here’s an icon with transparent background: http://hanswchen.wordpress.com/files/2009/11/dropbox-icon.png

4. The desktop file looks for the icon in /home/kyle/Dropbox/dropbox-icon.png.

And finally, the menu doesn’t work for me, probably because I use a symlink to my Dropbox directory. Not much to do about this, I guess. =)

Keep up the good work!