Can't observe a script with NetworkView

I’m trying to follow what I found in forums and manual, but it looks like my setup is not the same somehow? My ‘observed’ field does not have a ‘drop down’ and does not accept the script if I drag the name from the Project pane into the ‘observed’ field.
Is this a bug or am I doing something wrong?
17193-networkq.jpg

Found it. What I saw online, even in the manual, was ‘drag the name of the script’ but they didn’t say FROM WHERE. It’s here, in case anyone else runs into this problem:
17194-networka.jpg