You can't edit the menu, it's hardcoded. Well you can always edit the ksmserver source and rebuild it (just the part for the shutdown menu). Hopefully in KDE4 the default will be to use an XML interface file, which would be a lot easier to edit. It'd also make it a lot easier to add features like "Reboot to Windows", etc.

Reboot to windows is possible by editing the /opt/kde/share/config/kdm/kdmrc file In this file you'll find a section called [Shutdown] If you use Lilo you can change put this under this section : BootManager=Lilo Now, probably after you restarted the XServer you will have the lilo menu under the restart option :) It could be you can replace the Lilo by Grub but I don't know if this works. My distro (VectorLinux) is using Lilo for a bootmanager :)

if there is no such dir, just make it :) And put your picture (shutdownkonq.png) in that dir, thats it! btw, I recommend to use ~/.kde/share/apps/ksmserver/pics/ dir

oh btw, if you only wan't to apply the picture for a single user place it here: ~/.kde/share/apps/ksmserver/pics/shutdownkonq.png an additional advantage with this approach is that your picture won't be overwritten when you upgrade kde.