>any way of knowing ... if the player software is within its menu screen or not?

No, I don't think so.

>using the remote control for the functionality of the jump-to-sub-playlist and insert-playlist features
>on the Rio remote because those also do a menu-button-hold to implement.

Oh.. I didn't even know about those features! And they're not in Tony's ButtonFAQ applet, either.
Mmm... this one bugs me.. I may revert back, or .. something.. ..

>Also, the quick-press of the knob used to be the same as "enter" from within the menu structure.
>Now, when you are in the menu, if you press the button to confirm something, it executes your
>function instead of the normal function of pressing the knob.

Oh... yeah, that would happen (bug, or nice feature?).
One can always leave it on the [default] setting if it's a problem.