Okay, I junked my 1.3 site and have downloaded the 2.0 Flex Viewer template. I have my map services plugged in and I am starting fresh. The config file is a bit different. I see that the "Live Maps" from the 1.3 template are now under the "More.." button.
I have successfully added my dynamic layer under the operationallayers tag in the config.xml and the service shows up under the "More.." button. I now want my map service under "More..." to be expanded to show all of the layers available for toggling. Would that be in the LayerListWidget.mxml?