You have to do it from ArcCatalog now. Select the tool in the folder it resides, then you can change the item descriptions etc. I will agree with you that the 9.3 way was more intuitive.
There is a bug in 10.0 that prevents Help from showing the information in the Item Description. This has been fixed in 10.1; in 10.1, you enter documentation using Item Description. When you click Help, the contents of the Item Description is used to display help unless you have referenced a topic in a .chm file.For creating chm files, I really like HelpNDoc, a free product. We use it here to prototype new help content. It's real easy to use and outputs to different formats. See http://www.helpndoc.com/ for more info.
Dale,
Thanks for this awesome tip - the HelpNDoc software is a lifesaver!
Jacqueline
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